Cobalt International Energy, Inc. (CIE): Are Hedge Funds Right About This Stock?

Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Cobalt International Energy, Inc. (NYSE:CIE) based on that data.

Cobalt International Energy, Inc. (NYSE:CIE) shareholders have witnessed an increase in activity from the world’s largest hedge funds in recent months. At the end of this article we will also compare CIE to other stocks including Curtiss-Wright Corp. (NYSE:CW), Firstmerit Corp (NASDAQ:FMER), and Regal Entertainment Group (NYSE:RGC) to get a better sense of its popularity.

At the moment there are many gauges stock traders can use to size up stocks. Two of the less utilized gauges are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the elite investment managers can outpace the broader indices by a healthy amount (see the details here).

Now, let’s take a look at the key action surrounding Cobalt International Energy, Inc. (NYSE:CIE).

What have hedge funds been doing with Cobalt International Energy, Inc. (NYSE:CIE)?

At the end of the third quarter, a total of 18 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 6% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, John Paulson’s Paulson & Co has the biggest position in Cobalt International Energy, Inc. (NYSE:CIE), worth close to $295.6 million, amounting to 1.5% of its total 13F portfolio. The second most bullish fund manager is John Paulson of Paulson & Co, with a $138.1 million position; 0.7% of its 13F portfolio is allocated to the stock. Other professional money managers that hold long positions encompass Stephen C. Freidheim’s Cyrus Capital Partners, John Paulson’s Paulson & Co and Israel Englander’s Millennium Management.