U.S. Silica Holdings Inc (SLCA) Posts Big Gains On Earnings Beat: Is It Time To Get Back In This Stock?

How are hedge funds trading U.S. Silica Holdings Inc (NYSE:SLCA)?

Of the funds tracked by Insider Monkey, Millennium Management, led by Israel Englander, holds the most valuable position in U.S. Silica Holdings Inc (NYSE:SLCA) with around 2.7 million shares valued at $95.1 million, comprising 0.2% of its 13F portfolio by the end of March. The second-largest stake is held by Ariel Investments, led by John W. Rogers, holding around 2.5 million shares worth $88.6 million; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers that hold long positions encompass Anand Parekh’s Alyeska Investment Group, Philippe Laffont‘s Coatue Management, and Todd J. Kantor’s Encompass Capital Advisors.

Since U.S. Silica Holdings Inc (NYSE:SLCA) has experienced bearish sentiment from hedge funds, it’s safe to say that there is a sect of funds that slashed their positions entirely heading into the second quarter. Intriguingly, Jim Simons‘ Renaissance Technologies dropped the biggest stake in the stock by offloading all its 862,600 shares in the first trimester, with Glenn Russell Dubin of Highbridge Capital Management right behind this move, as the fund manager cut about 660,000 shares. These transactions are intriguing to say the least, as total hedge fund interest dropped by five funds heading into the second quarter.

Top hedge fund managers like Jim Simons opting to walk out of this stock clearly indicates the bearish hedge fund sentiment towards U.S. Silica Holdings Inc (NYSE:SLCA). Despite a second quarter earnings beat and the company’s positive comments about its core business, there are a lot of uncertainties surrounding the oil and gas business. As such, we don’t recommend buying this stock at the moment.

Disclosure: None