Is NRG Energy Inc (NRG) Going to Burn These Hedge Funds?

As one would reasonably expect, some big names were leading the bulls’ herd. Tourbillon Capital Partners, managed by Jason Karp, created the biggest call position in NRG Energy Inc (NYSE:NRG). Tourbillon Capital Partners had $19.4 million invested in the company at the end of the quarter. Jonathan Barrett and Paul Segal’s Luminus Management also made a $5.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Jos Shaver’s Electron Capital Partners, George Hall’s Clinton Group, and Mike Vranos’ Ellington.

Let’s go over hedge fund activity in other stocks similar to NRG Energy Inc (NYSE:NRG). These stocks are B/E Aerospace Inc (NASDAQ:BEAV), Great Plains Energy Incorporated (NYSE:GXP), Royal Gold, Inc USA) (NASDAQ:RGLD), and Hertz Global Holdings, Inc. (NYSE:HTZ). All of these stocks’ market caps are closest to NRG’s market cap.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $981 million. That figure was $331 million in NRG’s case. Hertz Global Holdings, Inc. (NYSE:HTZ) is the most popular stock in this table. On the other hand Royal Gold, Inc USA) (NASDAQ:RGLD) is the least popular one with only 19 bullish hedge fund positions. NRG Energy Inc (NYSE:NRG) 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 HTZ might be a better candidate to consider a long position.

Disclosure: None