Hedge Funds Are Selling Great Plains Energy Incorporated (GXP)

Since Great Plains Energy Incorporated (NYSE:GXP) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there is a sect of hedgies that elected to cut their full holdings in the third quarter. It’s worth mentioning that Ray Dalio’s Bridgewater Associates dumped the largest stake of the “upper crust” of funds watched by Insider Monkey, worth close to $0.4 million in stock, and Paul Tudor Jones’ Tudor Investment Corp was right behind this move, as the fund dumped about $0.3 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest dropped by 2 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Great Plains Energy Incorporated (NYSE:GXP) but similarly valued. We will take a look at Steel Dynamics, Inc. (NASDAQ:STLD), SolarCity Corp (NASDAQ:SCTY), GoPro Inc (NASDAQ:GPRO), and AECOM Technology Corp (NYSE:ACM). All of these stocks’ market caps resemble GXP’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $552 million. That figure was $148 million in GXP’s case. SolarCity Corp (NASDAQ:SCTY) is the most popular stock in this table. On the other hand AECOM Technology Corp (NYSE:ACM) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Great Plains Energy Incorporated (NYSE:GXP) is even less popular than ACM. Considering that hedge funds aren’t fond of this stock in relation to other companies mentioned in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.