Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Halcon Resources Corp (NYSE:HK) based on that data.
Halcon Resources Corp (NYSE:HK) has experienced a decrease in hedge fund sentiment lately. 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 Southwest Bancorp, Inc. (NASDAQ:OKSB), Avid Technology, Inc. (NASDAQ:AVID), and National Storage Affiliates Trust (NYSE:NSA) to gather more data points.
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In today’s marketplace there are numerous indicators market participants can use to analyze stocks. A couple of the most useful indicators are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce the S&P 500 by a healthy margin (see the details here).
With all of this in mind, we’re going to view the new action surrounding Halcon Resources Corp (NYSE:HK).
What have hedge funds been doing with Halcon Resources Corp (NYSE:HK)?
At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -14% from the second quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Brian Taylor’s Pine River Capital Management has the largest position in Halcon Resources Corp (NYSE:HK), worth close to $0.9 million, amounting to less than 0.1%% of its total 13F portfolio. On Pine River Capital Management’s heels is D. E. Shaw’s D E Shaw, with a $0.3 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors with similar optimism encompass Ken Griffin’s Citadel Investment Group, Israel Englander’s Millennium Management, and Paul Tudor Jones’ Tudor Investment Corp.
Due to the fact that Halcon Resources Corp (NYSE:HK) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there was a specific group of money managers that elected to cut their full holdings in the third quarter. At the top of the heap, Murray Stahl’s Horizon Asset Management said goodbye to the biggest stake of the 700 funds watched by Insider Monkey, valued at close to $0.9 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund dumped about $0.8 million worth of shares.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Halcon Resources Corp (NYSE:HK) but similarly valued. We will take a look at Southwest Bancorp, Inc. (NASDAQ:OKSB), Avid Technology, Inc. (NASDAQ:AVID), National Storage Affiliates Trust (NYSE:NSA), and Phoenix New Media Ltd ADR (NYSE:FENG). This group of stocks’ market caps are similar to HK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| OKSB | 7 | 20803 | -1 |
| AVID | 19 | 104219 | 0 |
| NSA | 11 | 85632 | 4 |
| FENG | 5 | 21107 | -2 |
As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $58 million. That figure was $1 million in HK’s case. Avid Technology, Inc. (NASDAQ:AVID) is the most popular stock in this table. On the other hand Phoenix New Media Ltd ADR (NYSE:FENG) is the least popular one with only 5 bullish hedge fund positions. Halcon Resources Corp (NYSE:HK) 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 AVID might be a better candidate to consider a long position.
