Is TerraForm Power Inc (TERP) Going to Burn These Hedge Funds?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. At the top of the heap, Robert Charles Gibbins’s Autonomy Capital dropped the biggest stake of the 700 funds monitored by Insider Monkey, comprising an estimated $6 million in stock. Ken Hahn’s fund, Quentec Asset Management, also dumped its stock, about $5.8 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as TerraForm Power Inc (NASDAQ:TERP) but similarly valued. These stocks are Badger Meter, Inc. (NYSE:BMI), New Relic Inc (NYSE:NEWR), Matthews International Corp (NASDAQ:MATW), and IMAX Corporation (USA) (NYSE:IMAX). This group of stocks’ market values resemble TERP’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BMI 14 45972 4
NEWR 19 274552 3
MATW 10 22075 3
IMAX 14 105884 1

As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $112 million. That figure was $385 million in TERP’s case. New Relic Inc (NYSE:NEWR) is the most popular stock in this table. On the other hand Matthews International Corp (NASDAQ:MATW) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks TerraForm Power Inc (NASDAQ:TERP) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.