Are Successful Investors Right To Be So Bearish on Synergy Resources Corp (SYRG)?

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Due to the fact that Synergy Resources Corp (NYSEMKT:SYRG) has sustained bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of hedge funds who sold off their full holdings heading into Q4. At the top of the heap, Dmitry Balyasny’s Balyasny Asset Management cashed in the largest investment of the 700 funds followed by Insider Monkey, comprising about $18.5 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dumped its stock, about $1.7 million worth.

Let’s go over hedge fund activity in other stocks similar to Synergy Resources Corp (NYSEMKT:SYRG). We will take a look at Meritage Homes Corp (NYSE:MTH), Clovis Oncology Inc (NASDAQ:CLVS), Axovant Sciences Ltd (NYSE:AXON), and BroadSoft Inc (NASDAQ:BSFT). This group of stocks’ market values match SYRG’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MTH 10 136566 -1
CLVS 33 752124 12
AXON 20 1198941 6
BSFT 13 104928 -6

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $548 million. That figure was $270 million in SYRG’s case. Clovis Oncology Inc (NASDAQ:CLVS) is the most popular stock in this table. On the other hand Meritage Homes Corp (NYSE:MTH) is the least popular one with only 10 bullish hedge fund positions. Synergy Resources Corp (NYSEMKT:SYRG) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CLVS might be a better candidate to consider taking a long position in.

Disclosure: None

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