Hedge Funds Are Crazy About Permian Basin Royalty Trust (PBT)

As industrywide interest jumped, specific money managers have been driving this bullishness. Russell Hawkins of Hawkins Capital initiated the largest position in Permian Basin Royalty Trust (NYSE:PBT). The fund reportedly had $0.2 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.1 million position during the quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Permian Basin Royalty Trust (NYSE:PBT) but similarly valued. These stocks are Syros Pharmaceuticals Inc (NASDAQ:SYRS), Seadrill Partners LLC (NYSE:SDLP), American Software, Inc. (NASDAQ:AMSWA), and Enova International Inc (NYSE:ENVA). All of these stocks’ market caps resemble PBT’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $37 million. That figure was $16 million in PBT’s case. Enova International Inc (NYSE:ENVA) is the most popular stock in this table. On the other hand American Software, Inc. (NASDAQ:AMSWA) is the least popular one with only 5 bullish hedge fund positions. Permian Basin Royalty Trust (NYSE:PBT) 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 ENVA might be a better candidate to consider taking a long position in.

Disclosure: None