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What Do Hedge Funds Think of Tesla Motors Inc (TSLA)?

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
CME 42 973079 -3
TRI 12 241724 -5
BRCM 67 6729781 -12
TRV 32 742795 -11

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.

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