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Here Is What Hedge Funds Think About SolarCity Corp (SCTY)

Since SolarCity Corp (NASDAQ:SCTY) has witnessed a declination in interest from the aggregate hedge fund industry, it’s easy to see that there were a few funds that decided to sell off their positions entirely heading into Q4. It’s worth mentioning that Jeffrey Tannenbaum’s Fir Tree dropped the biggest stake of all the hedgies followed by Insider Monkey, comprising about $99.5 million in stock, and Robert Pitts’ Steadfast Capital Management was right behind this move, as the fund dropped about $61.6 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 5 funds heading into Q4.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as SolarCity Corp (NASDAQ:SCTY) but similarly valued. We will take a look at GoPro Inc (NASDAQ:GPRO), Aecom (NYSE:ACM), AptarGroup, Inc. (NYSE:ATR), and Alere Inc (NYSE:ALR). This group of stocks’ market values are closest to SCTY’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GPRO 25 240454 4
ACM 22 448379 -5
ATR 18 101128 3
ALR 39 1344275 3

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $534 million. That figure was $872 million in SCTY’s case. Alere Inc (NYSE:ALR) is the most popular stock in this table. On the other hand AptarGroup, Inc. (NYSE:ATR) is the least popular one with only 18 bullish hedge fund positions. SolarCity Corp (NASDAQ:SCTY) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ALR might be a better candidate to consider a long position.

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