Halcon Resources Corp (HK): Are Hedge Funds Right About This Stock?

Due to the fact that Halcon Resources Corp (NYSE:HK) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there was a specific group of money managers that elected to cut their full holdings in the third quarter. At the top of the heap, Murray Stahl’s Horizon Asset Management said goodbye to the biggest stake of the 700 funds watched by Insider Monkey, valued at close to $0.9 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund dumped about $0.8 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Halcon Resources Corp (NYSE:HK) but similarly valued. We will take a look at Southwest Bancorp, Inc. (NASDAQ:OKSB), Avid Technology, Inc. (NASDAQ:AVID), National Storage Affiliates Trust (NYSE:NSA), and Phoenix New Media Ltd ADR (NYSE:FENG). This group of stocks’ market caps are similar to HK’s market cap.

As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $58 million. That figure was $1 million in HK’s case. Avid Technology, Inc. (NASDAQ:AVID) is the most popular stock in this table. On the other hand Phoenix New Media Ltd ADR (NYSE:FENG) is the least popular one with only 5 bullish hedge fund positions. Halcon Resources Corp (NYSE:HK) 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 AVID might be a better candidate to consider a long position.