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 CVR Energy, Inc. (NYSE:CVI) based on that data.
CVR Energy, Inc. (NYSE:CVI) was in 19 hedge funds’ portfolios at the end of September. CVI has seen an increase in enthusiasm from smart money lately. There were 17 hedge funds in our database with CVI 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 Paramount Group Inc (NYSE:PGRE), Morningstar, Inc. (NASDAQ:MORN), and Vermilion Energy Inc (NYSE:VET) to gather more data points.
Follow Cvr Energy Inc (NYSE:CVI)
Follow Cvr Energy Inc (NYSE:CVI)
In today’s marketplace there are dozens of tools, stock market investors use to appraise their holdings. A pair of the most innovative tools are hedge fund and insider trading moves. We have shown that, historically, those who follow the best picks of the best fund managers can outperform the S&P 500 by a healthy amount (see the details here).
Keeping this in mind, we’re going to take a gander at the recent action encompassing CVR Energy, Inc. (NYSE:CVI).
What have hedge funds been doing with CVR Energy, Inc. (NYSE:CVI)?
Heading into Q4, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 12% from one quarter earlier. With hedge funds’ capital changing hands, there exists a few key hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Icahn Capital LP, managed by Carl Icahn, holds the number one position in CVR Energy, Inc. (NYSE:CVI). The fund has an $2.92 billion position in the stock, comprising 10.5% of its 13F portfolio. Sitting at the No. 2 spot is Israel Englander of Millennium Management, with an $11.3 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Other members of the smart money that hold long positions contain Ken Griffin’s Citadel Investment Group, Joel Greenblatt’s Gotham Asset Management and John Overdeck and David Siegel’s Two Sigma Advisors.
As one would reasonably expect, specific money managers were breaking ground themselves. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, established the most valuable position in CVR Energy, Inc. (NYSE:CVI). The fund had $5.2 million invested in the company at the end of the quarter. Michael Platt and William Reeves’s BlueCrest Capital Mgmt. also made a $1.5 million investment in the stock during the quarter. The following funds were also among the new CVI investors: Dmitry Balyasny’s Balyasny Asset Management, George Hall’s Clinton Group, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.
Let’s check out hedge fund activity in other stocks similar to CVR Energy, Inc. (NYSE:CVI). We will take a look at Paramount Group Inc (NYSE:PGRE), Morningstar, Inc. (NASDAQ:MORN), Vermilion Energy Inc (NYSE:VET), and Equity Commonwealth (NYSE:EQC). This group of stocks’ market values are closest to CVI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PGRE | 15 | 382798 | 4 |
| MORN | 14 | 266679 | 6 |
| VET | 6 | 9017 | -2 |
| EQC | 28 | 584268 | -5 |
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $311 million. That figure was $2.97 billion in CVI’s case. Equity Commonwealth (NYSE:EQC) is the most popular stock in this table. On the other hand Vermilion Energy Inc (NYSE:VET) is the least popular one with only 6 bullish hedge fund positions. While CVR Energy, Inc. (NYSE:CVI) is not the most popular stock in this group, hedge fund interest is still above average and the amount invested in this company is significantly larger. The presence of Carl Icahn among the major shareholders is also a very strong sign and we would recommend further research into CVI to establish whether it is a good candidate for a long position.
