5 Best Russell 2000 Stocks To Buy According To Hedge Funds

3. Chord Energy Corporation (NASDAQ:CHRD)

Number of Hedge Fund Holders: 40

Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company based in Houston, Texas. The company is engaged in acquiring, exploiting, developing, and exploring for crude oil, natural gas, and natural gas liquids in the Williston Basin. On February 22, Chord Energy Corporation (NASDAQ:CHRD) declared a $1.25 per share quarterly dividend, in line with previous. The dividend is payable on March 19, to shareholders on record as of March 5. It is one of the best Russell 2000 stocks to invest in. 

According to Insider Monkey’s fourth quarter database, 40 hedge funds held stakes in Chord Energy Corporation (NASDAQ:CHRD), compared to 38 funds in the last quarter. Christian Zann’s Sourcerock Group is the largest stakeholder of the company, with 637,751 shares worth $106 million. 

Madison Small Cap Fund stated the following regarding Chord Energy Corporation (NASDAQ:CHRD) in its fourth quarter 2023 investor letter:

“After carefully scouring the landscape for almost two years, we initiated a new position in Energy company Chord Energy Corporation (NASDAQ:CHRD). Chord is an exploration and production company and the product of a recent merger between Oasis and Whiting Petroleum. We have history as shareholders in the past in Whiting Petroleum and new management has already demonstrated its commitment to a shareholder return business model. We think the return to a single basin operating model plays to CHRD’s strength, as it enables the company to fully take advantage of its scale and size in the Bakken. The company is in a strong position to capitalize on upcoming value-enhancing opportunities in terms of basin consolidation, and so we expect CHRD to generate significant free cash flow over the next three years to fund an attractive 3% plus dividend yield. As we discussed earlier, Energy underperformed meaningfully in 2023 and so we exploited this opportunity to make our first energy investment in several years. We believe CHRD can generate positive economic returns with oil above $55, giving us a significant downside cushion to the commodity. From a portfolio perspective, we like the hedge Chord provides in a volatile geopolitical climate. Finally, Chord’s strong position in the Bakken makes it an attractive takeover target for larger integrated energy companies.”