Should You Avoid Abengoa Yield PLC (ABY)?

Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.

Abengoa Yield PLC (NASDAQ:ABY) was in 19 hedge funds’ portfolios at the end of the third quarter of 2015. ABY has seen a decrease in enthusiasm from smart money recently. There were 22 hedge funds in our database with ABY positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as International Bancshares Corp (NASDAQ:IBOC), ZS Pharma Inc (NASDAQ:ZSPH), and National Penn Bancshares (NASDAQ:NPBC) to gather more data points.

With all of this in mind, let’s take a glance at the fresh action encompassing Abengoa Yield PLC (NASDAQ:ABY).

What does the smart money think about Abengoa Yield PLC (NASDAQ:ABY)?

Heading into Q4, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -14% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Daniel Lewis’s Orange Capital has the biggest position in Abengoa Yield PLC (NASDAQ:ABY), worth close to $62.4 million, comprising 4.8% of its total 13F portfolio. Coming in second is Roystone Capital Partners, led by Richard Barrera, holding a $60.3 million position; the fund has 2.9% of its 13F portfolio invested in the stock. Some other members of the smart money with similar optimism comprise Phill Gross and Robert Atchinson’s Adage Capital Management, Alok Agrawal’s Bloom Tree Partners and Leon Cooperman’s Omega Advisors.