Is SemGroup Corp (SEMG) Going to Burn These Hedge Funds?

With general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Balyasny Asset Management initiated the most outsized position in SemGroup Corp (NYSE:SEMG). Balyasny Asset Management had $13.1 million invested in the company at the end of the quarter. Paul Reeder and Edward Shapiro’s PAR Capital Management also initiated an $11.6 million position during the quarter. The other funds with new positions in the stock are Robert Emil Zoellner’s Alpine Associates, Steve Cohen’s Point72 Asset Management, and Richard Driehaus’ Driehaus Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as SemGroup Corp (NYSE:SEMG) but similarly valued. These stocks are Travelport Worldwide Ltd (NYSE:TVPT), Trustmark Corp (NASDAQ:TRMK), Platform Specialty Products Corp (NYSE:PAH), and Diplomat Pharmacy Inc (NYSE:DPLO). All of these stocks’ market caps are closest to SEMG’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $378 million. That figure was $371 million in SEMG’s case. Platform Specialty Products Corp (NYSE:PAH) is the most popular stock in this table. On the other hand Trustmark Corp (NASDAQ:TRMK) is the least popular one with only 7 bullish hedge fund positions. SemGroup Corp (NYSE:SEMG) 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 PAH might be a better candidate to consider taking a long position in.

Disclosure: None