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 Panhandle Oil and Gas Inc. (NYSE:PHX) based on that data.
Panhandle Oil and Gas Inc. (NYSE:PHX) was in 8 hedge funds’ portfolios at the end of September. PHX investors should be aware of an increase in activity from the world’s largest hedge funds of late. There were 6 hedge funds in our database with PHX positions at the end of the previous quarter. 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 ChemoCentryx Inc (NASDAQ:CCXI), Atlas Resource Partners, L.P. (NYSE:ARP), and Franklin Covey Co. (NYSE:FC) to gather more data points.
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In the eyes of most market participants, hedge funds are seen as slow, old financial vehicles of years past. While there are over 8000 funds with their doors open today, Our experts look at the crème de la crème of this group, around 700 funds. It is estimated that this group of investors direct the majority of the hedge fund industry’s total asset base, and by shadowing their finest stock picks, Insider Monkey has revealed a few investment strategies that have historically outrun the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
With all of this in mind, we’re going to view the fresh action surrounding Panhandle Oil and Gas Inc. (NYSE:PHX).
How have hedgies been trading Panhandle Oil and Gas Inc. (NYSE:PHX)?
At Q3’s end, a total of 8 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 33% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Trigran Investments, managed by Douglas T. Granat, holds the largest position in Panhandle Oil and Gas Inc. (NYSE:PHX). Trigran Investments has an $19.6 million position in the stock, comprising 6.1% of its 13F portfolio. The second largest stake is held by Paul Hondros’ AlphaOne Capital Partners, with an $2.3 million position; the fund has 1% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish consist of Chuck Royce’s Royce & Associates, and Cliff Asness’ AQR Capital Management.
Consequently, key hedge funds were breaking ground themselves. AlphaOne Capital Partners established the most outsized position in Panhandle Oil and Gas Inc. (NYSE:PHX). John Overdeck and David Siegel’s Two Sigma Advisors also initiated an $0.2 million position during the quarter. Ken Griffin’s Citadel Investment Group and Matthew Hulsizer’s PEAK6 Capital Management were also among the new PHX investors.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Panhandle Oil and Gas Inc. (NYSE:PHX) but similarly valued. These stocks are ChemoCentryx Inc (NASDAQ:CCXI), Atlas Resource Partners, L.P. (NYSE:ARP), Franklin Covey Co. (NYSE:FC), and Marine Products Corp. (NYSE:MPX). This group of stocks’ market caps match PHX’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CCXI | 10 | 69580 | -1 |
| ARP | 5 | 16011 | 0 |
| FC | 8 | 24400 | 0 |
| MPX | 4 | 16564 | 2 |
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $32 million, compared to the $24 million figure in PHX’s case. ChemoCentryx Inc (NASDAQ:CCXI) is the most popular stock in this table. On the other hand Marine Products Corp. (NYSE:MPX) is the least popular one with only 4 bullish hedge fund positions. Panhandle Oil and Gas Inc. (NYSE:PHX) 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 CCXI might be a better candidate to consider a long position.
