USG Corporation (USG): Are Hedge Funds Right About This Stock?

Judging by the fact that USG Corporation (NYSE:USG) has experienced declining sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedgies who were dropping their full holdings by the end of the third quarter. Intriguingly, Ken Griffin’s Citadel Investment Group sold off the biggest stake of the 700 funds watched by Insider Monkey, totaling an estimated $9.6 million in call options, and Citadel Investment Group was right behind this move, as the fund cut about $3.7 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as USG Corporation (NYSE:USG) but similarly valued. These stocks are FNFV Group (NYSE:FNFV), Portland General Electric Company (NYSE:POR), Gulfport Energy Corporation (NASDAQ:GPOR), and Charles River Laboratories (NYSE:CRL). This group of stocks’ market caps match USG’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $426 million. That figure was $1.39 billion in USG’s case. Gulfport Energy Corporation (NASDAQ:GPOR) is the most popular stock in this table. On the other hand Portland General Electric Company (NYSE:POR) is the least popular one with only 13 bullish hedge fund positions. USG Corporation (NYSE:USG) 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 GPOR might be a better candidate to consider taking a long position in.

Disclosure: None