Is Enstar Group Ltd. (ESGR) Going to Burn These Hedge Funds?

Since Enstar Group Ltd. (NASDAQ:ESGR) has sustained falling interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of fund managers that elected to cut their entire stakes in the third quarter. At the top of the heap, Paul Tudor Jones’ Tudor Investment Corp got rid of the biggest investment of the “upper crust” of funds tracked by Insider Monkey, totaling about $0.5 million in stock. George Hall’s fund, Clinton Group, also sold off its stock, about $0.4 million worth.

Let’s check out hedge fund activity in other stocks similar to Enstar Group Ltd. (NASDAQ:ESGR). We will take a look at Juno Therapeutics Inc (NASDAQ:JUNO), Embraer SA (ADR) (NYSE:ERJ), PDC Energy Inc (NASDAQ:PDCE), and Piedmont Office Realty Trust, Inc. (NYSE:PDM). This group of stocks’ market valuations match ESGR’s market valuation.

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 $155 million. That figure was $485 million in ESGR’s case. PDC Energy Inc (NASDAQ:PDCE) is the most popular stock in this table. On the other hand Piedmont Office Realty Trust, Inc. (NYSE:PDM) is the least popular one with only 10 bullish hedge fund positions. Enstar Group Ltd. (NASDAQ:ESGR) 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 PDCE might be a better candidate to consider taking a long position in.

Disclosure: None