The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Continental Resources, Inc. (NYSE:CLR).
Continental Resources, Inc. has experienced a decrease in hedge fund interest of late. CLR was in 34 hedge funds’ portfolios at the end of September. There were 42 hedge funds in our database with CLR positions at the end of the previous quarter. At the end of this article we will also compare CLR to other stocks including Rockwell Collins, Inc. (NYSE:COL), D.R. Horton, Inc. (NYSE:DHI), and SL Green Realty Corp (NYSE:SLG) to get a better sense of its popularity.
Follow Continental Resources Inc (NYSE:CLR)
Follow Continental Resources Inc (NYSE:CLR)
In the financial world there are numerous gauges stock traders put to use to size up publicly traded companies. A couple of the most innovative gauges are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the best hedge fund managers can trounce their index-focused peers by a very impressive margin (see the details here).
Keeping this in mind, let’s take a gander at the recent action regarding Continental Resources, Inc. (NYSE:CLR).
How are hedge funds trading Continental Resources, Inc. (NYSE:CLR)?
At the end of the third quarter, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -19% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Ken Griffin’s Citadel Investment Group has the most valuable position in Continental Resources, Inc. (NYSE:CLR), worth close to $178.8 million, corresponding to 0.2% of its total 13F portfolio. Coming in second is Renaissance Technologies, led by Jim Simons, holding a $38.6 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors that are bullish include Todd J. Kantor’s Encompass Capital Advisors, Jorge Paulo Lemann’s 3G Capital and Murray Stahl’s Horizon Asset Management.
Judging by the fact that Continental Resources, Inc. (NYSE:CLR) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of hedgies who were dropping their full holdings by the end of the third quarter. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management said goodbye to the biggest investment of the 700 funds watched by Insider Monkey, comprising close to $24.2 million in stock, and Pasco Alfaro / Richard Tumure’s Miura Global Management was right behind this move, as the fund cut about $19.1 million worth. These transactions are interesting, as total hedge fund interest dropped by 8 funds by the end of the third quarter.
Let’s check out hedge fund activity in other stocks similar to Continental Resources, Inc. (NYSE:CLR). These stocks are Rockwell Collins, Inc. (NYSE:COL), D.R. Horton, Inc. (NYSE:DHI), SL Green Realty Corp (NYSE:SLG), and CBRE Group Inc (NYSE:CBG). This group of stocks’ market caps are closest to CLR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| COL | 17 | 190702 | -3 |
| DHI | 40 | 1299030 | -2 |
| SLG | 12 | 99631 | -8 |
| CBG | 32 | 1662629 | 0 |
As you can see these stocks had an average of 25.25 hedge funds with bullish positions and the average amount invested in these stocks was $813 million. That figure was $448 million in CLR’s case. D.R. Horton, Inc. (NYSE:DHI) is the most popular stock in this table. On the other hand SL Green Realty Corp (NYSE:SLG) is the least popular one with only 12 bullish hedge fund positions. Continental Resources, Inc. (NYSE:CLR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DHI might be a better candidate to consider a long position.
