We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of Cimarex Energy Co (NYSE:XEC).
Is Cimarex Energy Co (NYSE:XEC) the right pick for your portfolio? The best stock pickers are becoming more confident. The number of long hedge fund bets rose by 3 in recent months. Cimarex Energy Co (NYSE:XEC) was in 40 hedge funds’ portfolios at the end of the third quarter of 2015. There were 37 hedge funds in our database with Cimarex Energy Co (NYSE:XEC) holdings at the end of the previous quarter. At the end of this article, we will also compare Cimarex Energy Co (NYSE:XEC) to other stocks including Bed Bath & Beyond Inc. (NASDAQ:BBBY), Linear Technology Corporation (NASDAQ:LLTC), and Sealed Air Corp (NYSE:SEE) to get a better sense of its popularity.
Follow Cimarex Energy Co (NYSE:XEC)
Follow Cimarex Energy Co (NYSE:XEC)
According to most investors, hedge funds are perceived as slow, outdated investment tools of years past. While there are more than 8000 funds in operation at the moment, Our experts look at the leaders of this club, approximately 700 funds. Most estimates calculate that this group of people has their hands on bulk of the smart money’s total capital, and by watching their unrivaled equity investments, Insider Monkey has found numerous investment strategies that have historically defeated the broader indices. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, we’re going to take a look at the new action regarding Cimarex Energy Co (NYSE:XEC).
What does the smart money think about Cimarex Energy Co (NYSE:XEC)?
Heading into Q4, a total of 40 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 8% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Citadel Investment Group, managed by Ken Griffin, holds the largest position in Cimarex Energy Co (NYSE:XEC). Citadel Investment Group has a $215.4 million position in the stock, comprising 0.2% of its 13F portfolio. The second most bullish fund manager is Israel Englander of Millennium Management, with a $156.2 million position; 0.3% of its 13F portfolio is allocated to the company. Remaining professional money managers that are bullish include Charles de Vaulx’s International Value Advisers, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC, and Phill Gross and Robert Atchinson’s Adage Capital Management.
As one would reasonably expect, key hedge funds have jumped into Cimarex Energy Co (NYSE:XEC) headfirst. Alyeska Investment Group, managed by Anand Parekh, established the biggest position in Cimarex Energy Co (NYSE:XEC). Alyeska Investment Group had $26.5 million invested in the company at the end of the quarter. D E Shaw also made a $5.8 million investment in the stock during the quarter. The other funds with brand new XEC positions are Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners, Jacob Gottlieb’s Visium Asset Management, and GLG Partners.
Let’s also examine hedge fund activity in other stocks similar to Cimarex Energy Co (NYSE:XEC). We will take a look at Bed Bath & Beyond Inc. (NASDAQ:BBBY), Linear Technology Corporation (NASDAQ:LLTC), Sealed Air Corp (NYSE:SEE), and Eastman Chemical Company (NYSE:EMN). All of these stocks’ market caps are closest to Cimarex Energy Co (NYSE:XEC)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BBBY | 33 | 743154 | 1 |
| LLTC | 20 | 1637058 | -9 |
| SEE | 49 | 2191952 | -5 |
| EMN | 37 | 1080524 | -2 |
As you can see, these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1.41 billion. That figure was $1.30 million in Cimarex Energy Co (NYSE:XEC)’s case. Sealed Air Corp (NYSE:SEE) is the most popular stock in this table. On the other hand, Linear Technology Corporation (NASDAQ:LLTC) is the least popular one with only 20 bullish hedge fund positions. Cimarex Energy Co (NYSE:XEC) 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, Sealed Air Corp (NYSE:SEE) might be a better candidate to consider a long position.
