Do Hedge Funds Love Contango Oil & Gas Company (MCF)?

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Because Contango Oil & Gas Company (NYSEMKT:MCF) has experienced a declination in interest from the aggregate hedge fund industry, logic holds that there is a sect of hedge funds that slashed their entire stakes in the third quarter. It’s worth mentioning that Paul Tudor Jones’s Tudor Investment Corp cut the biggest investment of the 700 funds tracked by Insider Monkey, valued at close to $0.5 million in stock, and Peter Muller’s PDT Partners was right behind this move, as the fund dropped about $0.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 3 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Contango Oil & Gas Company (NYSEMKT:MCF) but similarly valued. These stocks are Enzo Biochem, Inc. (NYSE:ENZ), Information Services Group, Inc. (NASDAQ:III), Rosetta Stone Inc (NYSE:RST), and Owens Realty Mortgage Inc (NYSEMKT:ORM). This group of stocks’ market values are closest to MCF’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ENZ 10 7486 -1
III 5 8022 -5
RST 12 81507 1
ORM 4 15055 0

As you can see these stocks had an average of 7.75 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. That figure was $57 million in MCF’s case. Rosetta Stone Inc (NYSE:RST) is the most popular stock in this table. On the other hand Owens Realty Mortgage Inc (NYSEMKT:ORM) is the least popular one with only 4 bullish hedge fund positions. Contango Oil & Gas Company (NYSEMKT:MCF) 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 RST might be a better candidate to consider a long position.

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