A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31st, so let’s proceed with the discussion of the hedge fund sentiment on EOG Resources Inc (NYSE:EOG).
EOG Resources Inc (NYSE:EOG) shareholders have witnessed a decrease in activity from the world’s largest hedge funds of late. EOG Resources Inc (NYSE:EOG) was in 30 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 60. Our calculations also showed that EOG isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Phillip Gross of Adage Capital
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Do Hedge Funds Think EOG Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 30 of the hedge funds tracked by Insider Monkey were long this stock, a change of -33% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards EOG over the last 23 quarters. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were adding to their stakes meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the biggest position in EOG Resources Inc (NYSE:EOG). Adage Capital Management has a $245.5 million position in the stock, comprising 0.5% of its 13F portfolio. On Adage Capital Management’s heels is Two Sigma Advisors, led by John Overdeck and David Siegel, holding a $96.3 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining professional money managers with similar optimism contain Cliff Asness’s AQR Capital Management, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Mountain Lake Investment Management allocated the biggest weight to EOG Resources Inc (NYSE:EOG), around 6.82% of its 13F portfolio. Beddow Capital Management is also relatively very bullish on the stock, designating 2.03 percent of its 13F equity portfolio to EOG.
Judging by the fact that EOG Resources Inc (NYSE:EOG) has witnessed falling interest from the smart money, logic holds that there was a specific group of fund managers that elected to cut their entire stakes last quarter. Intriguingly, Andrew Wellington and Jeff Keswin’s Lyrical Asset Management sold off the largest stake of the 750 funds followed by Insider Monkey, totaling close to $147.7 million in stock, and Renaissance Technologies was right behind this move, as the fund dropped about $36.5 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 15 funds last quarter.
Let’s go over hedge fund activity in other stocks similar to EOG Resources Inc (NYSE:EOG). We will take a look at Roper Technologies Inc. (NYSE:ROP), DoorDash, Inc. (NYSE:DASH), American Electric Power Company, Inc. (NYSE:AEP), National Grid plc (NYSE:NGG), Roku, Inc. (NASDAQ:ROKU), IDEXX Laboratories, Inc. (NASDAQ:IDXX), and Microchip Technology Incorporated (NASDAQ:MCHP). This group of stocks’ market values are closest to EOG’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ROP | 42 | 1497344 | 2 |
| DASH | 38 | 4774544 | 0 |
| AEP | 32 | 809288 | 0 |
| NGG | 9 | 331590 | 4 |
| ROKU | 63 | 3781353 | 3 |
| IDXX | 49 | 2851712 | 3 |
| MCHP | 42 | 962773 | -3 |
| Average | 39.3 | 2144086 | 1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 39.3 hedge funds with bullish positions and the average amount invested in these stocks was $2144 million. That figure was $596 million in EOG’s case. Roku, Inc. (NASDAQ:ROKU) is the most popular stock in this table. On the other hand National Grid plc (NYSE:NGG) is the least popular one with only 9 bullish hedge fund positions. EOG Resources Inc (NYSE:EOG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for EOG is 24.4. 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 gained 22.8% in 2021 through July 2nd and still beat the market by 6 percentage points. A small number of hedge funds were also right about betting on EOG as the stock returned 18.9% since the end of the first quarter (through 7/2) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
