Halcon Resources Corp (NYSE:HK) was in 16 hedge funds' portfolio at the end of March. HK investors should pay attention to an increase in enthusiasm from smart money lately. There were 15 hedge funds in our database with HK holdings at the end of the previous quarter.
To the average investor, there are a multitude of methods market participants can use to watch their holdings. Two of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass the broader indices by a superb margin (see just how much).
Equally as integral, positive insider trading activity is another way to parse down the financial markets. Just as you'd expect, there are many motivations for an insider to get rid of shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this tactic if shareholders know where to look (learn more here).
Consequently, we're going to take a look at the latest action surrounding Halcon Resources Corp (NYSE:HK).
At Q1's end, a total of 16 of the hedge funds we track held long positions in this stock, a change of 7% from the first quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.
According to our comprehensive database, Citadel Investment Group, managed by Ken Griffin, holds the largest position in Halcon Resources Corp (NYSE:HK). Citadel Investment Group has a $121.6 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Israel Englander of Millennium Management, with a $21.5 million position; 0.1% of its 13F portfolio is allocated to the stock. Remaining peers that hold long positions include Andrew Spokes's Farallon Capital, Steven Cohen's SAC Capital Advisors and Scott Sinclair and Laurence Chang's Cascabel Management.
Now, some big names were leading the bulls' herd. SAC Capital Advisors, managed by Steven Cohen, assembled the most outsized position in Halcon Resources Corp (NYSE:HK). SAC Capital Advisors had 8.9 million invested in the company at the end of the quarter. T Boone Pickens's BP Capital also made a $3.9 million investment in the stock during the quarter. The other funds with new positions in the stock are David Costen Haley's HBK Investments, John Bader's Halcyon Asset Management, and Arvind Sanger's GeoSphere Capital Management.
Insider purchases made by high-level executives is most useful when the company in question has experienced transactions within the past six months. Over the latest 180-day time frame, Halcon Resources Corp (NYSE:HK) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let's check out hedge fund and insider activity in other stocks similar to Halcon Resources Corp (NYSE:HK). These stocks are Atwood Oceanics, Inc. (NYSE:ATW), Kodiak Oil & Gas Corp (USA) (NYSE:KOG), SandRidge Energy Inc. (NYSE:SD), Pengrowth Energy Corp (USA) (NYSE:PGH), and Enerplus Corp (USA) (NYSE:ERF). This group of stocks are in the oil & gas drilling & exploration industry and their market caps resemble HK's market cap.