Citadel Investment Group Ups Stakes in Finish Line Inc (FINL), Standard Pacific Corp. (SPF), Key Energy Services Inc. (KEG)

Key Energy Services Inc. (NYSE:KEG) is an onshore, rig-based well servicing contractor with a market cap of $385.2 million. The filing showed that Citadel upped its stake in the company to 8.06 million shares from 5.99 million shares held previously. The stake equates to 5.2% of the company’s common stock. Shares of the company have risen by an impressive 39.25% year-to-date. Key Energy Services, Inc. (NYSE: KEG) reported a loss of $91.1 million, or $0.39 per share, for the first quarter of 2015, on revenues of $267.8 million. In a statement, the company’s President and Chief Executive Officer (CEO) Dick Alario said that “the first quarter presented unprecedented challenges as the decline in oil prices caused a precipitous pull-back in E&P spending, adversely impacting all of our businesses.” Moreover, Key Energy Services Inc. (NYSE: KEG) disclosed that it decided to refine the company’s strategy to focus only on North American production enhancement. The company is taking steps to exit markets outside of North America, either by sale or relocation of assets. In its latest 13F for the first quarter, MHR Fund Management, led by Mark Rachesky, reported owning 17.48 million shares of Key Energy Services Inc. (NYSE: KEG).

We track hedge funds to learn about their top ideas, which are decided upon after spending millions on research. Insider Monkey follows more than 700 hedge funds and our research has shown that the most popular small-cap stocks among hedge funds managed to outperform the market by double digits annually between 1999 and 2012. We have also been tracking the performance of these stocks in real time since the end of August 2012. These stocks have returned 143.7% through May 15th and beaten the S&P 500 ETF (SPY) by over 80 percentage points (see the details here).

Disclosure: None