Hess Corp. (HES): Are Hedge Funds Right About This Stock?

Page 1 of 2

Hess Corp. (NYSE:HES) investors should pay attention to an increase in support from the world’s most elite money managers lately.

To most traders, hedge funds are viewed as unimportant, outdated investment tools of the past. While there are greater than 8000 funds trading at the moment, we at Insider Monkey look at the upper echelon of this group, close to 450 funds. It is estimated that this group controls the majority of the smart money’s total capital, and by tracking their best stock picks, we have come up with a few investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (see the details here).

Just as integral, bullish insider trading sentiment is a second way to parse down the financial markets. As the old adage goes: there are lots of stimuli for a bullish insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the valuable potential of this method if shareholders know where to look (learn more here).

With all of this in mind, let’s take a glance at the key action surrounding Hess Corp. (NYSE:HES).

How have hedgies been trading Hess Corp. (NYSE:HES)?

Heading into Q2, a total of 59 of the hedge funds we track were bullish in this stock, a change of 55% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings meaningfully.

Earnings Analysis: Hess Corp. (NYSE: HES)According to our comprehensive database, Paul Singer’s Elliott Management had the biggest position in Hess Corp. (NYSE:HES), worth close to $1.0741 billion, comprising 22.5% of its total 13F portfolio. Sitting at the No. 2 spot is Ralph V. Whitworth of Relational Investors, with a $655.7 million position; 12.6% of its 13F portfolio is allocated to the stock. Remaining hedgies that are bullish include Brian Jackelow’s SAB Capital Management, John Paulson’s Paulson & Co and Jonathon Jacobson’s Highfields Capital Management.

As aggregate interest increased, key hedge funds were leading the bulls’ herd. SAB Capital Management, managed by Brian Jackelow, assembled the most outsized position in Hess Corp. (NYSE:HES). SAB Capital Management had 291 million invested in the company at the end of the quarter. John Paulson’s Paulson & Co also initiated a $192.9 million position during the quarter. The other funds with brand new HES positions are Jonathon Jacobson’s Highfields Capital Management, Robert Pitts’s Steadfast Capital Management, and James Dinan’s York Capital Management.

Insider trading activity in Hess Corp. (NYSE:HES)

Insider trading activity, especially when it’s bullish, is particularly usable when the company in question has experienced transactions within the past six months. Over the latest 180-day time period, Hess Corp. (NYSE:HES) has experienced 10 unique insiders buying, and 8 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Hess Corp. (NYSE:HES). These stocks are Ultrapar Participacoes SA (ADR) (NYSE:UGP), Imperial Oil Limited (USA) (NYSEAMEX:IMO), Marathon Petroleum Corp (NYSE:MPC), Valero Energy Corporation (NYSE:VLO), and Marathon Oil Corporation (NYSE:MRO). This group of stocks are in the oil & gas refining & marketing industry and their market caps resemble HES’s market cap.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!