Is FairPoint Communications Inc (FRP) Worthy of Your Portfolio?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. Intriguingly, Israel Englander’s Millennium Management said goodbye to the biggest position of the 700 funds followed by Insider Monkey, totaling close to $1.7 million in stock, and Mike Vranos’s Ellington was right behind this move, as the fund cut about $0.2 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to FairPoint Communications Inc (NASDAQ:FRP). We will take a look at Peoples Bancorp Inc. (NASDAQ:PEBO), BP Prudhoe Bay Royalty Trust (NYSE:BPT), Landauer, Inc. (NYSE:LDR), and NeoPhotonics Corp (NYSE:NPTN). All of these stocks’ market caps are similar to FRP’s market cap.

As you can see these stocks had an average of nine funds with bullish positions and the average amount invested in these stocks was $42 million. That figure was $158 million in FRP’s case. NeoPhotonics Corp (NYSE:NPTN) is the most popular stock in this table with 20 funds holding shares. On the other hand BP Prudhoe Bay Royalty Trust (NYSE:BPT) is the least popular one with only two bullish hedge fund positions. FairPoint Communications Inc (NASDAQ:FRP) 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 NeoPhotonics Corp (NYSE:NPTN) might be a better candidate to consider taking a long position in.