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Hedge Funds Aren’t Crazy About Enphase Energy Inc (ENPH) Anymore

Judging by the fact that Enphase Energy Inc (NASDAQ:ENPH) has experienced a declining sentiment from the entirety of the hedge funds we track, we can see that there is a sect of hedge funds who sold off their full holdings heading into Q4. It’s worth mentioning that Peter A. Wright’s P.A.W. CAPITAL PARTNERS cut the biggest position of all the hedgies watched by Insider Monkey, comprising close to $0.9 million in stock, and Alex Snow’s Lansdowne Partners was right behind this move, as the fund sold off about $0.6 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 4 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to Enphase Energy Inc (NASDAQ:ENPH). These stocks are Bill Barrett Corporation (NYSE:BBG), Care.com Inc (NYSE:CRCM), Cumulus Media Inc (NASDAQ:CMLS), and Assembly Biosciences Inc (NASDAQ:ASMB). All of these stocks’ market caps are similar to ENPH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BBG 16 15779 1
CRCM 8 23432 -2
CMLS 21 27231 -2
ASMB 12 73854 -2

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $37 million in ENPH’s case. Cumulus Media Inc (NASDAQ:CMLS) is the most popular stock in this table. On the other hand, Care.com Inc (NYSE:CRCM) is the least popular one with only 8 bullish hedge fund positions. Enphase Energy Inc (NASDAQ:ENPH) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CMLS might be a better candidate to consider a long position.

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