Here’s Why Pacific Ethanol Inc (PEIX) Is Trending Higher Today

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What does the smart money think about Pacific Ethanol Inc (NASDAQ:PEIX)?

At the end of the first quarter, a total of 20 of the hedge funds tracked by Insider Monkey were long Pacific Ethanol, up from 17 funds a quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes substantially.

When looking at the hedge funds followed by Insider Monkey, Dalton Investments, managed by Gifford Combs, holds the largest position in Pacific Ethanol Inc (NASDAQ:PEIX). Dalton Investments held 1.49 million shares valued at $16.1 million, followed by Vertex One Asset Management, led by John Thiessen, which owns 1.12 million shares. Other hedge funds that were bullish during the first trimester include Remy Trafelet’s Trafelet Capital, Israel Englander‘s Millennium Management and Robert B. Gillam’s McKinley Capital Management.

Moreover, the aforementioned Trafelet Capital, initiated the largest stake in Pacific Ethanol Inc (NASDAQ:PEIX), which comprised 986,000 shares valued at $10.6 million at the end of the March quarter. The other funds with new positions were Jim Simons’s Renaissance Technologies, Dmitry Balyasny’s Balyasny Asset Management, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Keeping in mind the current low valuation of Pacific Ethanol Inc (NASDAQ:PEIX), the positive hedge fund sentiment and also the fact that even though the company missed estimates in its last quarterly financial results, it delivered hefty earnings surprises in the two quarters prior to that, we consider that the stock is a ‘Buy’ at the moment.

Disclosure: None

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