Amid an overall market correction, many stocks that smart money investors were collectively bullish on tanked during the third quarter. Among them, Valeant and Micron ranked among the top 30 picks and both lost around 20%. Citigroup, which was the third most popular stock, lost 10% amid uncertainty regarding the interest rates. Nevertheless, our research shows that most of the stocks that smart money likes historically generate strong risk-adjusted returns. This is why following the smart money sentiment is a useful tool at identifying the next stock to invest in.
California Resources Corporation. (NYSE:CRC) was in 31 hedge funds’ portfolios at the end of September. CRC investors should be aware of a decrease in activity from the world’s largest hedge funds recently. There were 37 hedge funds in our database with CRC holdings at the end of the previous quarter. At the end of this article we will also compare CRC to other stocks, including NxStage Medical, Inc. (NASDAQ:NXTM), Banner Corporation (NASDAQ:BANR), and Cooper-Standard Holdings Inc (NYSE:CPS) to get a better sense of its popularity.
To the average investor, there are plenty of metrics stock traders can use to size up publicly traded companies. A pair of the most useful metrics are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the top picks of the top fund managers can outclass the S&P 500 by a superb margin (see the details here).
With all of this in mind, let’s view the fresh action surrounding California Resources Corporation. (NYSE:CRC).
How are hedge funds trading California Resources Corporation. (NYSE:CRC)?
Heading into Q4, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a drop of 16% from the previous quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Soroban Capital Partners, managed by Eric W. Mandelblatt, holds the largest position in California Resources Corporation. (NYSE:CRC). In its latest quarterly report, the fund reportedly held a $89.2 million stake in the company, comprising 0.6% of its 13F portfolio. Coming in second is Steven Richman of East Side Capital (RR Partners), with a $34.2 million position; the fund has 1.5% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Stephen C. Freidheim’s Cyrus Capital Partners, George Soros’s Soros Fund Management and Gordy Holterman and Derek Dunn’s Overland Advisors.