What Smart Money Thinks about Talen Energy Corp (TLN)?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Interestingly, one of the biggest hedge funds in the world, Millennium Management, dropped the biggest stake of the “upper crust” of funds followed by Insider Monkey, totaling about $22.4 million in stock, and John Orrico’s Water Island Capital was right behind this move, as the fund dumped about $9.5 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Talen Energy Corp (NYSE:TLN). We will take a look at Cheetah Mobile Inc (ADR) (NYSE:CMCM), Select Medical Holdings Corporation (NYSE:SEM), Monogram Residential Trust Inc (NYSE:MORE), and Nexstar Broadcasting Group, Inc. (NASDAQ:NXST). This group of stocks’ market values are closest to TLN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CMCM 5 23052 -1
SEM 13 412467 -3
MORE 12 22361 0
NXST 45 889860 4

As you can see these stocks had an average of 19 funds with bullish positions and the average amount invested in these stocks was $337 million. That figure was $194 million in TLN’s case. Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) is the most popular stock in this table. On the other hand Cheetah Mobile Inc (ADR) (NYSE:CMCM) is the least popular one with only five bullish hedge fund positions. Talen Energy Corp (NYSE:TLN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) might be a better candidate to consider taking a long position in.

Disclosure: none