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Is Exelon Corporation (EXC) Going to Burn These Hedge Funds?

Due to the fact that Exelon Corporation (NYSE:EXC) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedge funds that decided to sell off their positions entirely by the end of the third quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management cut the largest position of the 700 funds watched by Insider Monkey, comprising about $70.7 million in stock. Jonathan Barrett and Paul Segal’s fund, Luminus Management, also dumped its stock, about $27.8 million worth of EXC shares. These transactions are interesting, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Exelon Corporation (NYSE:EXC) but similarly valued. These stocks are Praxair, Inc. (NYSE:PX), Barclays PLC (ADR) (NYSE:BCS), TransCanada Corporation (USA) (NYSE:TRP), and LyondellBasell Industries NV (NYSE:LYB). This group of stocks’ market values are closest to EXC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PX 34 536035 -1
BCS 14 235346 -1
TRP 14 331601 -4
LYB 51 2441555 8

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $886 million. That figure was $782 million in EXC’s case. LyondellBasell Industries NV (NYSE:LYB) is the most popular stock in this table. On the other hand Barclays PLC (ADR) (NYSE:BCS) and TransCanada Corporation (USA) (NYSE:TRP) are the least popular ones with only 14 bullish hedge fund positions each. Exelon Corporation (NYSE:EXC) 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 LYB might be a better candidate to consider a long position.

Disclosure: none.

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