Should You Avoid Atlantic Power Corp (AT)?

Because Atlantic Power Corp (NYSE:AT) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there was a specific group of hedgies that elected to cut their entire stakes last quarter. Interestingly, Michael Reeber’s Andalusian Capital Partners cut the biggest investment of the 700 funds followed by Insider Monkey, totaling about $3.9 million in stock. Andy Redleaf’s fund, Whitebox Advisors, also dumped its stock, about $1.4 million worth. These transactions are important to note, as total hedge fund interest fell by 1 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to Atlantic Power Corp (NYSE:AT). These stocks are KMG Chemicals, Inc. (NYSE:KMG), Nutraceutical Int’l Corp. (NASDAQ:NUTR), Fidus Investment Corp (NASDAQ:FDUS), and FuelCell Energy, Inc. (NASDAQ:FCEL). This group of stocks’ market valuations are similar to AT’s market valuation.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $32 million in AT’s case. KMG Chemicals, Inc. (NYSE:KMG) is the most popular stock in this table. On the other hand Nutraceutical Int’l Corp. (NASDAQ:NUTR) and Fidus Investment Corp (NASDAQ:FDUS) are the least popular ones with only 4 bullish hedge fund positions. Compared to these stocks Atlantic Power Corp (NYSE:AT) 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.