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 WPX Energy Inc (NYSE:WPX).
WPX Energy Inc (NYSE:WPX) has experienced an increase in support from the world’s most elite money managers in recent months. WPX was in 37 hedge funds’ portfolios at the end of September. There were 26 hedge funds in our database with WPX 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 OmniVision Technologies, Inc. (NASDAQ:OVTI), Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY), and Dean Foods Co (NYSE:DF) to gather more data points.
Follow Wpx Energy Inc. (NYSE:WPX)
Follow Wpx Energy Inc. (NYSE:WPX)
In today’s marketplace there are tons of methods shareholders employ to size up stocks. A duo of the most underrated methods are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the best fund managers can beat their index-focused peers by a superb amount (see the details here).
Keeping this in mind, let’s take a gander at the key action encompassing WPX Energy Inc (NYSE:WPX).
What does the smart money think about WPX Energy Inc (NYSE:WPX)?
At Q3’s end, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 42% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Steve Cohen’s Point72 Asset Management has the number one position in WPX Energy Inc (NYSE:WPX), worth close to $88 million, corresponding to 0.7% of its total 13F portfolio. The second most bullish fund manager is Carlson Capital, led by Clint Carlson, holding an $86.1 million position; 1% of its 13F portfolio is allocated to the company. Remaining professional money managers with similar optimism encompass Israel Englander’s Millennium Management, Anand Parekh’s Alyeska Investment Group and David Costen Haley’s HBK Investments.
With a general bullishness amongst the heavyweights, some big names have jumped into WPX Energy Inc (NYSE:WPX) headfirst. Alyeska Investment Group, managed by Anand Parekh, assembled the largest position in WPX Energy Inc (NYSE:WPX). Alyeska Investment Group had $38.5 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated an $27.4 million position during the quarter. The other funds with new positions in the stock are Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management, Bernard Selz’s Selz Capital, and Clint Carlson’s Carlson Capital.
Let’s also examine hedge fund activity in other stocks similar to WPX Energy Inc (NYSE:WPX). We will take a look at OmniVision Technologies, Inc. (NASDAQ:OVTI), Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY), Dean Foods Co (NYSE:DF), and Eros International plc (NYSE:EROS). This group of stocks’ market valuations are closest to WPX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| OVTI | 23 | 226683 | 0 |
| PLAY | 23 | 165264 | -3 |
| DF | 22 | 163823 | -1 |
| EROS | 16 | 130263 | 2 |
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $172 million. That figure was $530 million in WPX’s case. OmniVision Technologies, Inc. (NASDAQ:OVTI) is the most popular stock in this table. On the other hand Eros International plc (NYSE:EROS) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks WPX Energy Inc (NYSE:WPX) 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.
