What Do Hedge Funds Think of El Paso Electric Company (EE)?

Judging by the fact that El Paso Electric Company (NYSE:EE) has witnessed bearish sentiment from the smart money, logic holds that there exists a select few fund managers who sold off their full holdings by the end of the third quarter. At the top of the heap, Michael Platt and William Reeves’ BlueCrest Capital Mgmt. cut the largest position of the “upper crust” of funds tracked by Insider Monkey, totaling about $0.7 million in stock, and Paul Tudor Jones’s Tudor Investment Corp was right behind this move, as the fund said goodbye to about $0.4 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 4 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to El Paso Electric Company (NYSE:EE). These stocks are Colliers International Group Inc (NASDAQ:CIGI), Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV), Interface, Inc. (NASDAQ:TILE), and Neustar Inc (NYSE:NSR). All of these stocks’ market caps are closest to EE’s market cap.

As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $103 million. That figure was $139 million in EE’s case. Interface, Inc. (NASDAQ:TILE) is the most popular stock in this table. On the other hand Eaton Vance Ltd Duration Income Fund (NYSEMKT:EVV) is the least popular one with only 6 bullish hedge fund positions. El Paso Electric Company (NYSE:EE) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TILE might be a better candidate to consider a long position.