It’s worth mentioning that Nick Niell’s Arrowgrass Capital Partners said goodbye to the largest stake of the 700 funds monitored by Insider Monkey, comprising about $21.5 million in call options., and Joe DiMenna’s ZWEIG DIMENNA PARTNERS was right behind this move, as the fund sold off about $21.5 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now review hedge fund activity in other stocks similar to Tesla Motors Inc (NASDAQ:TSLA). These stocks are CME Group Inc (NASDAQ:CME), Thomson Reuters Corporation (USA) (NYSE:TRI), Broadcom Corporation (NASDAQ:BRCM), and Travelers Companies Inc (NYSE:TRV). This group of stocks’ market values match TSLA’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 38.25 hedge funds with bullish positions and the average amount invested in these stocks was $2,172 million. That figure was $1,012 million in TSLA’s case. Broadcom Corporation (NASDAQ:BRCM) is the most popular stock in this table. On the other hand Thomson Reuters Corporation (USA) (NYSE:TRI) is the least popular one with only 12 bullish hedge fund positions. Tesla Motors Inc (NASDAQ:TSLA) 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 BRCM might be a better candidate to consider a long position.