There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Carl Icahn and George Soros think. Those hedge fund operators make billions of dollars each year by hiring the best and the brightest to do research on stocks, including small cap stocks that big brokerage houses simply don’t cover. Because of Carl Icahn and other elite funds’ exemplary historical records, we pay attention to their small cap picks. In this article, we use hedge fund filing data to analyze CNX Coal Resources LP (NYSE:CNXC).
CNX Coal Resources LP (NYSE:CNXC) shareholders have witnessed an increase in support from the world’s most elite money managers lately. It may come as a surprise, as the stock lost 27% value throughout the third quarter, although it started trading this quarter only. We will cover hedge funds that held positions in CNX Coal Resources LP (NYSE:CNXC) at the end of September.
Further, we will also compare CNX Coal Resources LP (NYSE:CNXC) to other stocks, including Syneron Medical Ltd. (NASDAQ:ELOS), Compugen Ltd. (USA) (NASDAQ:CGEN), and Pacific Continental Corporation (NASDAQ:PCBK) to get a better sense of its popularity.
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Follow Consol Coal Resources Lp (NYSE:CCR)
In the 21st century investor’s toolkit, there are a lot of indicators shareholders can use to grade publicly traded companies. A pair of the less utilized indicators are hedge fund and insider trading moves. Our researchers have shown that, historically, those who follow the top picks of the best fund managers can trounce the broader indices by a healthy margin (see the details here).
With all of this in mind, we’re going to take a look at the fresh action regarding CNX Coal Resources LP (NYSE:CNXC).
How have hedgies been trading CNX Coal Resources LP (NYSE:CNXC)?
At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Greenlight Capital, managed by David Einhorn, holds the most valuable position in CNX Coal Resources LP (NYSE:CNXC). Greenlight Capital has a $61.7 million position in the stock, comprising 1% of its 13F portfolio. Sitting at the No. 2 spot is Water Island Capital, managed by John Orrico, which holds a $4.5 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other members of the smart money that hold long positions include Joe Huber’s Huber Capital Management, Charles Davidson’s Wexford Capital, and Emanuel J. Friedman’s EJF Capital.
Now, specific money managers have jumped into CNX Coal Resources LP (NYSE:CNXC) headfirst. Hedge funds with new positions in the stock are Huber Capital Management, Wexford Capital, and EJF Capital.
Let’s check out hedge fund activity in other stocks similar to CNX Coal Resources LP (NYSE:CNXC). We will take a look at Syneron Medical Ltd. (NASDAQ:ELOS), Compugen Ltd. (USA) (NASDAQ:CGEN), Pacific Continental Corporation (NASDAQ:PCBK), and Oncothyreon Inc (USA) (NASDAQ:ONTY). This group of stocks’ market valuations are similar to CNX Coal Resources LP (NYSE:CNXC)’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ELOS | 18 | 94139 | -4 |
| CGEN | 4 | 3124 | 1 |
| PCBK | 8 | 30991 | 1 |
| ONTY | 19 | 84063 | 1 |
As you can see, these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $71 million in CNX Coal Resources LP (NYSE:CNXC)’s case. Oncothyreon Inc (USA) (NASDAQ:ONTY) is the most popular stock in this table. On the other hand, Compugen Ltd. (USA) (NASDAQ:CGEN) is the least popular one with only 4 bullish hedge fund positions. CNX Coal Resources LP (NYSE:CNXC) 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, Oncothyreon Inc (USA) (NASDAQ:ONTY) might be a better candidate to consider a long position.
