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

Consequently, key money managers were breaking ground themselves. Soroban Capital Partners, managed by Eric W. Mandelblatt, established the most outsized position in SemGroup Corp (NYSE:SEMG). Soroban Capital Partners had $6.2 million invested in the company at the end of the quarter. Michael Reeber’s Andalusian Capital Partners also initiated a $3.2 million position during the quarter. The other funds with brand new SEMG positions are Sander Gerber’s Hudson Bay Capital Management, Jonathan Barrett and Paul Segal’s Luminus Management, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as SemGroup Corp (NYSE:SEMG) but similarly valued. These stocks are Patterson-UTI Energy, Inc. (NASDAQ:PTEN), Sterling Bancorp (NYSE:STL), Diebold Incorporated (NYSE:DBD), and Tootsie Roll Industries, Inc. (NYSE:TR). All of these stocks’ market caps resemble SEMG’s market cap.

As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $234 million. That figure was $383 million in SEMG’s case. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is the most popular stock in this table. On the other hand Tootsie Roll Industries, Inc. (NYSE:TR) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks SemGroup Corp (NYSE:SEMG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.