A market correction in the third quarter, spurred by a number of global macroeconomic concerns ended up having a negative impact on the markets and many hedge funds as a result. The stocks of smaller companies were especially hard hit during this time as investors fled to investments seen as being safer. This is evident in the fact that the Russell 2000 ETF underperformed the S&P 500 ETF by 14 percentage points between June 25 and the end of October. We also received indications that hedge funds were trimming their positions amid the market volatility and uncertainty, and given their greater inclination towards smaller cap stocks than other investors, it follows that a stronger sell-off occurred in those stocks. Let’s study the hedge fund sentiment to see how those concerns affected their ownership of Crescent Point Energy Corp (NYSE:CPG) during the quarter.
Crescent Point Energy Corp (NYSE:CPG) investors should be aware of an increase in hedge fund sentiment recently. 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 Avnet, Inc. (NYSE:AVT), United Rentals, Inc. (NYSE:URI), and Tableau Software Inc (NYSE:DATA) to gather more data points.
In today’s marketplace there are dozens of metrics stock traders employ to evaluate stocks. A duo of the less known metrics are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best hedge fund managers can beat the market by a healthy amount (see the details here).
With all of this in mind, we’re going to take a glance at the new action surrounding Crescent Point Energy Corp (NYSE:CPG).
What does the smart money think about Crescent Point Energy Corp (NYSE:CPG)?
At the end of the third quarter, a total of 17 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 31% from the second quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Waratah Capital Advisors, managed by Brad Dunkley and Blair Levinsky, holds the largest position in Crescent Point Energy Corp (NYSE:CPG). Waratah Capital Advisors has a $30.7 million position in the stock, comprising 6.5% of its 13F portfolio. Coming in second is Vertex One Asset Management, managed by John Thiessen, which holds a $22.8 million position; 3.1% of its 13F portfolio is allocated to the company. Remaining professional money managers that are bullish consist of Eric Sprott’s Sprott Asset Management and Cliff Asness’s AQR Capital Management.