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

As aggregate interest increased, specific money managers have been driving this bullishness. Highbridge Capital Management, managed by Glenn Russell Dubin, assembled the largest position in Cobalt International Energy, Inc. (NYSE:CIE). Highbridge Capital Management had $5.6 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also made a $0.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Chao Ku’s Nine Chapters Capital Management and Jacob Gottlieb’s Visium Asset Management.

Let’s also examine hedge fund activity in other stocks similar to Cobalt International Energy, Inc. (NYSE:CIE). These stocks are Curtiss-Wright Corp. (NYSE:CW), Firstmerit Corp (NASDAQ:FMER), Regal Entertainment Group (NYSE:RGC), and Stifel Financial Corp. (NYSE:SF). This group of stocks’ market caps resemble CIE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CW 17 269563 0
FMER 12 52004 1
RGC 20 102936 1
SF 19 218215 3

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $161 million. That figure was $800 million in CIE’s case. Regal Entertainment Group (NYSE:RGC) is the most popular stock in this table, whereas the least popular one is Firstmerit Corp (NASDAQ:FMER). Cobalt International Energy, Inc. (NYSE:CIE), with 18 hedge fund bullish positions is not the most popular stock in this group, but hedge fund interest is still above average. Although this may imply it is a stock worth considering, we’d we’d rather spend our time focusing on stocks that hedge funds are most collectively bullish on. In this case, RGC might be a better candidate to consider a long position.