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Is Essent Group Ltd (ESNT) Going to Burn These Hedge Funds?

On the other hand, several funds decided to close their positions in Essent Group Ltd (NYSE:ESNT) entirely between July and September. George Soros’ Soros Fund Management dumped the largest position of all the hedgies studied by Insider Monkey, totaling an estimated $32.3 million in stock. Israel Englander’s fund, Millennium Management, also dumped its stock, about $11.2 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Essent Group Ltd (NYSE:ESNT) but similarly valued. We will take a look at Suburban Propane Partners LP (NYSE:SPH), Electronics For Imaging, Inc. (NASDAQ:EFII), MGIC Investment Corp. (NYSE:MTG), and Glacier Bancorp, Inc. (NASDAQ:GBCI). This group of stocks’ market caps are closest to ESNT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SPH 4 6526 -1
EFII 10 158491 0
MTG 36 545424 -10
GBCI 5 94491 -1

As you can see these stocks had an average of 14 funds with bullish positions and the average amount invested in these stocks was $201 million, which is higher than the $109 million figure in ESNT’s case. MGIC Investment Corp. (NYSE:MTG) is the most popular stock in this table. On the other hand Suburban Propane Partners LP (NYSE:SPH) is the least popular one with only four bullish hedge fund positions. Essent Group Ltd (NYSE:ESNT) 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 MGIC Investment Corp. (NYSE:MTG) might be a better candidate to consider taking a long position in.

Disclosure: None

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