What Do Hedge Funds Think of Denbury Resources Inc. (DNR)?

As industrywide interest jumped, key money managers have been driving this bullishness. Renaissance Technologies, managed by Jim Simons, created the most valuable position in Denbury Resources Inc. (NYSE:DNR). Renaissance Technologies had $11 million invested in the company at the end of the quarter. Ryan Heslop and Ariel Warszawski’s Firefly Value Partners also made a $2.4 million investment in the stock during the quarter. The following funds were also among the new DNR investors: Benjamin A. Smith’s Laurion Capital Management, Neil Chriss’ Hutchin Hill Capital, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Denbury Resources Inc. (NYSE:DNR) but similarly valued. We will take a look at Zafgen Inc (NASDAQ:ZFGN), PharMerica Corporation (NYSE:PMC), Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW), and HudBay Minerals Inc Ord Shs (NYSE:HBM). This group of stocks’ market valuations are similar to DNR’s market valuation.

As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was $70 million in DNR’s case. PharMerica Corporation (NYSE:PMC) is the most popular stock in this table. On the other hand HudBay Minerals Inc Ord Shs (NYSE:HBM) is the least popular one with only 7 bullish hedge fund positions. Denbury Resources Inc. (NYSE:DNR) 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 PMC might be a better candidate to consider a long position.