Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Do Hedge Funds Love Key Energy Services, Inc. (KEG)?

Page 1 of 2

Is Key Energy Services, Inc. (NYSE:KEG) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.

Is Key Energy Services, Inc. an excellent investment now? The smart money is turning less bullish. The number of bullish hedge fund bets fell by 5 in recent months. KEG was in 15 hedge funds’ portfolios at the end of September. There were 20 hedge funds in our database with KEG holdings 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 North American Energy Partners Inc.(USA) (NYSE:NOA), Health Insurance Innovations Inc (NASDAQ:HIIQ), and Spark Networks Inc (NYSEMKT:LOV) to gather more data points.

Follow Key Energy Services Inc (NYSE:KEG)
Trade (NYSE:KEG) Now!

If you’d ask most stock holders, hedge funds are perceived as underperforming, outdated investment tools of yesteryear. While there are over 8000 funds trading at the moment, Our experts choose to focus on the top tier of this group, approximately 700 funds. It is estimated that this group of investors administer the lion’s share of the smart money’s total capital, and by keeping track of their top picks, Insider Monkey has discovered many investment strategies that have historically beaten the broader indices. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points per year for a decade in their back tests.

With all of this in mind, let’s view the key action encompassing Key Energy Services, Inc. (NYSE:KEG).

What does the smart money think about Key Energy Services, Inc. (NYSE:KEG)?

At Q3’s end, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 25% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, MHR Fund Management, managed by Mark Rachesky, holds the biggest position in Key Energy Services, Inc. (NYSE:KEG), worth an estimated $8.2 million and comprising 0.4% of its 13F portfolio. On MHR Fund Management’s heels is Citadel Investment Group, led by Ken Griffin, holding a $3.5 million position; less than 0.1% of its 13F portfolio is allocated to the company. Other peers with similar optimism include Jim Simons’s Renaissance Technologies, Richard S. Pzena’s Pzena Investment Management and Chuck Royce’s Royce & Associates.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!