Is Delek US Holdings, Inc. (DK) Worthy of Your Portfolio?

Because Delek US Holdings, Inc. (NYSE:DK) has gone through declining sentiment from the smart money, it’s safe to say that there lies a certain “tier” of money managers that decided to sell off their positions entirely heading into Q4. It’s worth mentioning that Jeffrey Smith’s Starboard Value LP cut the biggest stake of all the hedgies studied by Insider Monkey, comprising an estimated $24.4 million in stock. Min Htoo and Jordan Teramo’s fund, Anandar Capital Management, also sold off its call options, about $19.8 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Delek US Holdings, Inc. (NYSE:DK) but similarly valued. We will take a look at Primoris Services Corp (NASDAQ:PRIM), Mpg Office Trust Inc (NYSE:MPG), Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW), and MBIA Inc. (NYSE:MBI). This group of stocks’ market valuations are similar to DK’s market valuation.

As you can see these stocks had an average of 13 funds with bullish positions and the average amount invested in these stocks was $105 million, which is lower than the $230 million figure in DK’s case. MBIA Inc. (NYSE:MBI) is the most popular stock in this table. On the other hand Primoris Services Corp (NASDAQ:PRIM) is the least popular one with only eight funds having reported long positions. Delek US Holdings, Inc. (NYSE:DK) 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 MBIA Inc. (NYSE:MBI) might be a better candidate to consider taking a long position in.

Disclosure: none