Is Chesapeake Utilities Corporation (CPK) Worthy of Your Portfolio?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. Intriguingly, Michael Platt and William Reeves’ BlueCrest Capital Mgmt. cut the largest position of the 700 funds tracked by Insider Monkey, valued at close to $0.5 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also cut its stock, about $0.2 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Chesapeake Utilities Corporation (NYSE:CPK) but similarly valued. These stocks are ScanSource, Inc. (NASDAQ:SCSC), Brooks Automation, Inc. (USA) (NASDAQ:BRKS), HudBay Minerals Inc Ord Shs (NYSE:HBM), and Himax Technologies, Inc. (ADR) (NASDAQ:HIMX). This group of stocks’ market caps match CPK’s market cap.

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 $94 million, versus $44 million in CPK’s case. Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) is  by far the most popular stock in this table, while HudBay Minerals Inc Ord Shs (NYSE:HBM) is the least popular one with only nine funds having reported long positions. Chesapeake Utilities Corporation (NYSE:CPK) 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 Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) might be a better candidate to consider taking a long position in.

Disclosure: none