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Should You Buy Icahn Enterprises LP (IEP)?

Seeing as Icahn Enterprises LP (NASDAQ:IEP) has experienced a declining sentiment from the smart money, logic holds that there is a sect of hedgies that decided to sell off their positions entirely last quarter. Interestingly, Citadel Investment Group dropped the biggest investment of all the hedgies monitored by Insider Monkey, totaling close to $0.1 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also said goodbye to its stock, about $17,000 worth of shares. These bearish behaviors are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks similar to Icahn Enterprises LP (NASDAQ:IEP). We will take a look at Credicorp Ltd. (USA) (NYSE:BAP), Wyndham Worldwide Corporation (NYSE:WYN), PVH Corp (NYSE:PVH), and L-3 Communications Holdings, Inc. (NYSE:LLL). This group of stocks’ market caps is similar to Icahn Enterprises LP (NASDAQ:IEP)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BAP 18 389335 -4
WYN 29 1045532 1
PVH 37 1246881 1
LLL 18 227149 -4

As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $727 million. That figure was $7.93 billion in Icahn Enterprises LP (NASDAQ:IEP)’s case. PVH Corp (NYSE:PVH) is the most popular stock in this table. On the other hand, Credicorp Ltd. (USA) (NYSE:BAP) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks, Icahn Enterprises LP (NASDAQ:IEP) is even less popular than Credicorp Ltd. (USA) (NYSE:BAP). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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