How TransCanada Corporation (USA) (TRP) Stacks Up Against Similarly Valued Stocks

Judging by the fact that TransCanada Corporation (USA) (NYSE:TRP) has faced declining sentiment from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedgies that slashed their full holdings heading into Q4. Interestingly, Alec Litowitz and Ross Laser’s Magnetar Capital cut the biggest stake of all the investors watched by Insider Monkey, worth about $83.9 million in stock, and Michael Platt and William Reeves’s BlueCrest Capital Mgmt. was right behind this move, as the fund cut about $9.1 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to TransCanada Corporation (USA) (NYSE:TRP). These stocks are LyondellBasell Industries NV (NYSE:LYB), Boston Scientific Corporation (NYSE:BSX), PG&E Corporation (NYSE:PCG), and Prudential Financial Inc (NYSE:PRU). This group of stocks’ market values are similar to TRP’s market value.

As you can see these stocks had an average of 37 hedge funds with bullish positions and the average amount invested in these stocks was $1446 million. That figure was $332 million in TRP’s case. LyondellBasell Industries NV (NYSE:LYB) is the most popular stock in this table. On the other hand PG&E Corporation (NYSE:PCG) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks TransCanada Corporation (USA) (NYSE:TRP) is even less popular than PCG. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.