Published on 26 Oct 2021 on Insider Monkey via Yahoo Finance

CenterPoint Energy, Inc. (CNP) Fell Out Of Favor With Hedge Funds

The financial regulations require hedge funds and wealthy investors that exceeded the $100 million holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on June 30th. We at Insider Monkey have made an extensive database of more than 873 of those established hedge funds and famous value investors' filings. In this article, we analyze how these elite funds and prominent investors traded CenterPoint Energy, Inc. (NYSE:CNP) based on those filings.

Is CenterPoint Energy, Inc. (NYSE:CNP) undervalued? Prominent investors were taking a pessimistic view. The number of bullish hedge fund positions shrunk by 5 recently. CenterPoint Energy, Inc. (NYSE:CNP) was in 20 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 38. Our calculations also showed that CNP isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.