Here is What Hedge Funds Think About Cosan Limited (USA) (CZZ)

Judging by the fact that Cosan Limited (USA) (NYSE:CZZ) has faced bearish sentiment from hedge fund managers, we can see that there exists a select few funds that slashed their full holdings by the end of the third quarter. Intriguingly, Phill Gross and Robert Atchinson’s Adage Capital Management cut the largest stake of the 700 funds followed by Insider Monkey, totaling an estimated $4.3 million in stock. Philip Hempleman’s fund, Ardsley Partners, also cut its stock, about $0.9 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Cosan Limited (USA) (NYSE:CZZ) but similarly valued. We will take a look at ACCO Brands Corporation (NYSE:ACCO), First Bancorp (NYSE:FBP), Navigant Consulting, Inc. (NYSE:NCI), and Resolute Forest Products Inc (NYSE:RFP). This group of stocks’ market values are similar to CZZ’s market value.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $167 million, higher than the $67 million in CZZ’s case. Resolute Forest Products Inc (NYSE:RFP) is the most popular stock in this table, while ACCO Brands Corporation (NYSE:ACCO) is the least popular one with only 11 bullish hedge fund positions. Cosan Limited (USA) (NYSE:CZZ) 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 RFP might be a better candidate to consider a long position.