What Do Hedge Funds Think of Dynegy Inc. (DYN)?

Due to the fact that Dynegy Inc. (NYSE:DYN) has experienced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of funds that elected to cut their entire stakes heading into Q4. Interestingly, Bain Capital’s Brookside Capital dropped the largest stake of all the hedgies followed by Insider Monkey, worth close to $120.1 million in call options, and Mark Weissman, Adam Cohen and David Coleto’s Caspian Capital Partners was right behind this move, as the fund said goodbye to about $41.3 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 12 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to Dynegy Inc. (NYSE:DYN). These stocks are Cal-Maine Foods Inc (NASDAQ:CALM), International Game Technology (NYSE:IGT), The Cheesecake Factory Incorporated (NASDAQ:CAKE), and Companhia de Saneamento Basico (ADR) (NYSE:SBS). This group of stocks’ market valuations match DYN’s market valuation.

As you can see these stocks had an average of 19.5 hedge funds with bullish positions and the average amount invested in these stocks was $273 million. That figure was $1175 million in DYN’s case. Cal-Maine Foods Inc (NASDAQ:CALM) is the most popular stock in this table. On the other hand Companhia de Saneamento Basico (ADR) (NYSE:SBS) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Dynegy Inc. (NYSE:DYN) 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.