Chesapeake Energy Corporation (CHK): Are Hedge Funds Right About This Stock?

As one would reasonably expect, some big names were leading the bulls’ herd. Point State Capital, managed by Zach Schreiber, established the largest position in Chesapeake Energy Corporation (NYSE:CHK). Point State Capital had $121.7 million invested in the company at the end of the quarter. Bruce Kovner’s Caxton Associates LP also initiated a $41.9 million position during the quarter. The other funds with new positions in the stock are Steve Cohen’s Point72 Asset Management, Daniel S. Och’s OZ Management, and Benjamin A. Smith’s Laurion Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Chesapeake Energy Corporation (NYSE:CHK) but similarly valued. We will take a look at Oceaneering International (NYSE:OII), ENSCO PLC (NYSE:ESV), National Beverage Corp. (NASDAQ:FIZZ), and Prestige Brands Holdings, Inc. (NYSE:PBH). All of these stocks’ market caps match CHK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OII 22 165804 -10
ESV 33 555953 3
FIZZ 20 146113 11
PBH 17 204942 -1

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $268 million. That figure was $1.32 billion in CHK’s case. ENSCO PLC (NYSE:ESV) is the most popular stock in this table. On the other hand Prestige Brands Holdings, Inc. (NYSE:PBH) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Chesapeake Energy Corporation (NYSE:CHK) 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.