Is Resolute Energy Corp (REN) Going to Burn These Hedge Funds?

With a general bullishness amongst the heavyweights, key money managers have jumped into Resolute Energy Corp (NYSE:REN) headfirst. Panning Capital Management created the biggest position in Resolute Energy Corp (NYSE:REN). Panning Capital Management had $15.4 million invested in the company at the end of the quarter. Monarch Alternative Capital also initiated a $14.1 million position during the quarter. The other funds with brand new REN positions are George McCabe’s Portolan Capital Management, Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners, and Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Resolute Energy Corp (NYSE:REN) but similarly valued. These stocks are CU Bancorp (NASDAQ:CUNB), Green Bancorp Inc (NASDAQ:GNBC), First Defiance Financial (NASDAQ:FDEF), and Blue Nile Inc (NASDAQ:NILE). All of these stocks’ market caps are similar to REN’s market cap.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $31 million. That figure was $122 million in REN’s case. Blue Nile Inc (NASDAQ:NILE) is the most popular stock in this table. On the other hand CU Bancorp (NASDAQ:CUNB) is the least popular one with only 6 bullish hedge fund positions. Resolute Energy Corp (NYSE:REN) 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 NILE might be a better candidate to consider taking a long position in.

Disclosure: none