Here’s Why Traders Are Watching Mellanox, Xilinx, Bonanza Creek, and More

Shares of two energy companies, Bonanza Creek Energy Inc. (NYSE:BCEI) and SRC Energy Inc. (NYSE:SRCI) are each higher by  more than 10% after voters in Colorado voted to reject Proposition 112, which would have made drilling more difficult by mandating at least 2,500 feet separation between drilling activities and vulnerable or occupied areas. Given that BCEI and SRCI both have exposure to the state and the proposed measure, the proposition would likely have increased costs and was a downside risk. Now that the proposition has been rejected, the risks surrounding the two equities are arguably lower, hence the rally.

In terms of smart money holdings among the around 650 funds that we track, the largest stake in Bonanza Creek Energy Inc (NYSE:BCEI) was held by Mangrove Partners, which reported holding $47.1 million worth of stock at the end of June. It was followed by Anchorage Advisors with a $35.5 million position. Other investors bullish on the company included Venor Capital Management, Brigade Capital, and Lyon Street Capital. Heading into the fourth quarter of 2018, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in SRC Energy Inc. (NYSE:SRCI), a change of 44% from the second quarter of 2018.

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