Is Endurance Specialty Holdings Ltd. (ENH) Going to Burn These Hedge Funds?

Seeing as Endurance Specialty Holdings Ltd. (NYSE:ENH) has sustained declining sentiment from the aggregate hedge fund industry, we can see that there were a few funds who sold off their entire stakes by the end of the third quarter. It’s worth mentioning that Matthew Tewksbury’s Stevens Capital Management got rid of the biggest investment of the 700 funds tracked by Insider Monkey, worth an estimated $2 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund sold off about $1.6 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Endurance Specialty Holdings Ltd. (NYSE:ENH) but similarly valued. We will take a look at Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), HEICO Corporation (NYSE:HEI), Guidewire Software Inc (NYSE:GWRE), and Taubman Centers, Inc. (NYSE:TCO). This group of stocks’ market caps are similar to ENH’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $279 million. That figure was $307 million in ENH’s case. Guidewire Software Inc (NYSE:GWRE) is the most popular stock in this table. On the other hand Randgold Resources Ltd. (ADR) (NASDAQ:GOLD) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Endurance Specialty Holdings Ltd. (NYSE:ENH) is even less popular than GOLD. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None