The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider CNX Resources Corporation (NYSE:CNX) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
CNX Resources Corporation (NYSE:CNX) was in 34 hedge funds’ portfolios at the end of September. The all time high for this statistic is 38. CNX investors should pay attention to an increase in hedge fund sentiment lately. There were 30 hedge funds in our database with CNX holdings at the end of June. Our calculations also showed that CNX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Mason Hawkins of Southeastern Asset Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now we’re going to take a peek at the fresh hedge fund action encompassing CNX Resources Corporation (NYSE:CNX).
Do Hedge Funds Think CNX Is A Good Stock To Buy Now?
At the end of September, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 13% from one quarter earlier. By comparison, 33 hedge funds held shares or bullish call options in CNX a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Southeastern Asset Management held the most valuable stake in CNX Resources Corporation (NYSE:CNX), which was worth $355.4 million at the end of the third quarter. On the second spot was D E Shaw which amassed $63.2 million worth of shares. Aequim Alternative Investments, Graham Capital Management, and Quaker Capital Investments were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Southeastern Asset Management allocated the biggest weight to CNX Resources Corporation (NYSE:CNX), around 6.74% of its 13F portfolio. Quaker Capital Investments is also relatively very bullish on the stock, earmarking 3.97 percent of its 13F equity portfolio to CNX.
As one would reasonably expect, key money managers have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, initiated the largest position in CNX Resources Corporation (NYSE:CNX). Citadel Investment Group had $8.2 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $6.3 million position during the quarter. The other funds with new positions in the stock are Jerome L. Simon’s Lonestar Capital Management, Peter Schliemann’s Rutabaga Capital Management, and Frederick DiSanto’s Ancora Advisors.
Let’s also examine hedge fund activity in other stocks similar to CNX Resources Corporation (NYSE:CNX). We will take a look at Green Dot Corporation (NYSE:GDOT), Domtar Corporation (NYSE:UFS), Enovix Corporation (NASDAQ:ENVX), First Bancorp (NYSE:FBP), Cadence Bancorporation (NYSE:CADE), Yelp Inc (NYSE:YELP), and American Equity Investment Life Holding Company (NYSE:AEL). This group of stocks’ market valuations resemble CNX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GDOT | 23 | 575860 | 1 |
| UFS | 21 | 355182 | -8 |
| ENVX | 23 | 661835 | 23 |
| FBP | 26 | 253717 | 1 |
| CADE | 24 | 113674 | -1 |
| YELP | 26 | 534890 | -1 |
| AEL | 20 | 170592 | 0 |
| Average | 23.3 | 380821 | 2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.3 hedge funds with bullish positions and the average amount invested in these stocks was $381 million. That figure was $526 million in CNX’s case. First Bancorp (NYSE:FBP) is the most popular stock in this table. On the other hand American Equity Investment Life Holding Company (NYSE:AEL) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks CNX Resources Corporation (NYSE:CNX) is more popular among hedge funds. Our overall hedge fund sentiment score for CNX is 85.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks returned 28.6% in 2021 through November 30th but still managed to beat the market by 5.6 percentage points. Hedge funds were also right about betting on CNX as the stock returned 8.1% since the end of September (through 11/30) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Follow Cnx Resources Corp (NYSE:CNX)
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Disclosure: None. This article was originally published at Insider Monkey.
