We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore, imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn’t mean that they don’t have occasional colossal losses; they do (like Ackman’s recent Valeant losses). However, it is still a good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Hess Corp. (NYSE:HES).
Hess Corp. (NYSE:HES) shareholders have witnessed a decrease in activity from the world’s largest hedge funds recently. Hess Corp. (NYSE:HES) was in 41 hedge funds’ portfolios at the end of the third quarter of 2015. There were 43 hedge funds in our database with Hess Corp. (NYSE:HES) holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Mead Johnson Nutrition CO (NYSE:MJN), Tenaris S.A. (ADR) (NYSE:TS), and W.W. Grainger, Inc. (NYSE:GWW) to gather more data points.
In the eyes of most stock holders, hedge funds are perceived as slow, old investment vehicles of years past. While there are greater than 8000 funds with their doors open today, we hone in on the top tier of this club, about 700 funds. These investment experts direct most of all hedge funds’ total asset base, and by paying attention to their highest performing picks, Insider Monkey has figured out numerous investment strategies that have historically outperformed the broader indices. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Now, let’s take a peek at the fresh action regarding Hess Corp. (NYSE:HES).
What does the smart money think about Hess Corp. (NYSE:HES)?
At the end of the previous quarter, a total of 41 of the hedge funds tracked by Insider Monkey were long this stock, a drop of 5% from the last quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Paul Singer’s Elliott Management has the most valuable position in Hess Corp. (NYSE:HES), worth close to $891.1 million, comprising 17.1% of its total 13F portfolio. Sitting at the No. 2 spot is Fir Tree, which holds a $145.3 million position; 2.4% of its 13F portfolio is allocated to the company. Some other peers that are bullish consist of Ken Griffin’s Citadel Investment Group, Phill Gross and Robert Atchinson’s Adage Capital Management and Robert Polak’s Anchor Bolt Capital.