Is Phillips 66 (PSX) Going to Burn These Hedge Funds?

Now, specific money managers were breaking ground themselves. Masters Capital Management, managed by Mike Masters, created the most valuable call position in Phillips 66 (NYSE:PSX). Masters Capital Management had $80.6 million invested in the company at the end of the quarter. Michael Kaine’s Numina Capital also made a $37.2 million investment in the stock during the quarter. The other funds with brand new PSX positions are Paul Marshall and Ian Wace’s Marshall Wace LLP, Ken Griffin’s Citadel Investment Group, and George Hall’s Clinton Group.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Phillips 66 (NYSE:PSX) but similarly valued. These stocks are Target Corporation (NYSE:TGT), BCE Inc. (USA) (NYSE:BCE), Infosys Ltd ADR (NYSE:INFY), and Bank of Montreal (USA) (NYSE:BMO). This group of stocks’ market values match PSX’s market value.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $484 million. That figure was $7.32 billion in PSX’s case. Target Corporation (NYSE:TGT) is the most popular stock in this table. On the other hand BCE Inc. (USA) (NYSE:BCE) is the least popular one with only 16 bullish hedge fund positions. Phillips 66 (NYSE:PSX) 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 TGT might be a better candidate to consider a long position.

Disclosure: None