How do we determine whether Alon USA Energy, Inc. (NYSE:ALJ) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that their consensus long positions have historically outperformed the market when we adjust for known risk factors.
Alon USA Energy, Inc. investors should be aware of an increase in hedge fund interest in recent months. At the end of this article we will also compare ALJ to other stocks including World Wrestling Entertainment, Inc. (NYSE:WWE), EP Energy Corp (NYSE:EPE), and HFF, Inc. (NYSE:HF) to get a better sense of its popularity.
Follow Alon Usa Energy Inc. (NYSE:ALJ)
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With all of this in mind, let’s take a gander at the key action regarding Alon USA Energy, Inc. (NYSE:ALJ).
Hedge fund activity in Alon USA Energy, Inc. (NYSE:ALJ)
At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 28% from the second quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, D E Shaw holds the number one position in Alon USA Energy, Inc. (NYSE:ALJ). D E Shaw has a $70.7 million position in the stock, comprising 0.1% of its 13F portfolio. The second most bullish fund manager is Point72 Asset Management, led by Steve Cohen, holding a $26 million position; 0.2% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that hold long positions comprise Israel Englander’s Millennium Management, Jim Simons’ Renaissance Technologies and George Soros’ Soros Fund Management.
As one would reasonably expect, specific money managers have jumped into Alon USA Energy, Inc. (NYSE:ALJ) headfirst. Hutchin Hill Capital, managed by Neil Chriss, established the biggest position in Alon USA Energy, Inc. (NYSE:ALJ). Hutchin Hill Capital had $2.4 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $2.1 million investment in the stock during the quarter. The following funds were also among the new ALJ investors: Glenn Russell Dubin’s Highbridge Capital Management, Michael Platt and William Reeves’s BlueCrest Capital Mgmt., and Matthew Tewksbury’s Stevens Capital Management.
Let’s also examine hedge fund activity in other stocks similar to Alon USA Energy, Inc. (NYSE:ALJ). These stocks are World Wrestling Entertainment, Inc. (NYSE:WWE), EP Energy Corp (NYSE:EPE), HFF, Inc. (NYSE:HF), and United Community Banks Inc (NASDAQ:UCBI). This group of stocks’ market caps match ALJ’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WWE | 21 | 110136 | 7 |
| EPE | 19 | 95742 | -2 |
| HF | 18 | 76669 | 3 |
| UCBI | 15 | 293455 | -4 |
As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $144 million. That figure was $149 million in ALJ’s case. World Wrestling Entertainment, Inc. (NYSE:WWE) is the most popular stock in this table. On the other hand United Community Banks Inc (NASDAQ:UCBI) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Alon USA Energy, Inc. (NYSE:ALJ) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
