Hedge Funds Are Dumping Laclede Group Inc (LG)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider Laclede Group Inc (NYSE:LG) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.

Is Laclede Group Inc (NYSE:LG) going to take off soon? Investors who are in the know are in a bearish mood. The number of bullish hedge fund positions decreased by 1 lately. What is surprising is that the shares of Laclede Group Inc (NYSE:LG) gained 4.74% value during the quarter, prompting us to find out more about the hedge funds that had positions in the company, at the end of the previous quarter.

The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Cantel Medical Corp. (NYSE:CMN), Churchill Downs, Inc. (NASDAQ:CHDN), and Murphy USA Inc (NYSE:MUSA) to gather more data points.

In today’s marketplace, there are numerous formulas market participants have at their disposal to grade stocks. A duo of the less known formulas are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the top fund managers can outclass the market by a significant margin (see the details here).

With all of this in mind, let’s take a gander at the fresh action regarding Laclede Group Inc (NYSE:LG).

Hedge fund activity in Laclede Group Inc (NYSE:LG)

Heading into Q4, a total of 8 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decline of 11% from the second quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Luminus Management, managed by Jonathan Barrett and Paul Segal, holds the most valuable position in Laclede Group Inc (NYSE:LG). Luminus Management has a $54.7 million position in the stock, comprising 1.7% of its 13F portfolio. The second most bullish fund manager is Marshall Wace LLP, led by Paul Marshall and Ian Wace, holding a $9.3 million position; 0.1% of its 13F portfolio is allocated to the company. Some other professional money managers with similar optimism comprise D E Shaw, Stuart J. Zimmer’s Zimmer Partners, and Joel Greenblatt’s Gotham Asset Management.

Judging by the fact that Laclede Group Inc (NYSE:LG) has witnessed a declining sentiment from the smart money, it’s safe to say that there were a few money managers who were dropping their positions entirely last quarter. Intriguingly, Glenn Russell Dubin’s Highbridge Capital Management said goodbye to the biggest position of all the hedgies tracked by Insider Monkey, comprising an estimated $2.9 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also said goodbye to its stock, about $1 million worth of shares. These moves are important to note, as total hedge fund interest fell by 1 fund last quarter.

Let’s now review hedge fund activity in other stocks similar to Laclede Group Inc (NYSE:LG). These stocks are Cantel Medical Corp. (NYSE:CMN), Churchill Downs, Inc. (NASDAQ:CHDN), Murphy USA Inc (NYSE:MUSA), and Allscripts Healthcare Solutions Inc (NASDAQ:MDRX). All of these stocks’ market caps are similar to Laclede Group Inc (NYSE:LG)’s market cap.

As you can see, these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $448 million. That figure was $85 million in Laclede Group Inc (NYSE:LG)’s case. Churchill Downs, Inc. (NASDAQ:CHDN) is the most popular stock in this table. On the other hand, Cantel Medical Corp. (NYSE:CMN) is the least popular one with only 6 bullish hedge fund positions. Laclede Group Inc (NYSE:LG) 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, Churchill Downs, Inc. (NASDAQ:CHDN) might be a better candidate to consider a long position.