Devon Energy Corp (DVN): Hedge Funds Start Heading for the Exits

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Since Devon Energy Corp (NYSE:DVN) has faced falling interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of money managers that decided to sell off their full holdings last quarter. It’s worth mentioning that First Eagle Investment Management sold off the largest position of all the hedgies followed by Insider Monkey, valued at an estimated $317.7 million in stock, and Stuart J. Zimmer’s Zimmer Partners was right behind this move, as the fund cut about $110.6 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 11 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Devon Energy Corp (NYSE:DVN) but similarly valued. We will take a look at Vornado Realty Trust (NYSE:VNO), M&T Bank Corporation (NYSE:MTB), Deutsche Bank AG (USA) (NYSE:DB), and Nielsen Hldg NV (NYSE:NLSN). This group of stocks’ market caps match DVN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VNO 24 264017 2
MTB 22 786073 4
DB 22 111790 7
NLSN 26 436451 -3

As you can see these stocks had an average of 24  funds holding shares at the end of September and the average amount invested in these stocks was $400 million. That figure was $1.34 billion in Devon Energy’s case. Nielsen Hldg NV (NYSE:NLSN) is the most popular stock in this table. On the other hand M&T Bank Corporation (NYSE:MTB) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Devon Energy Corp (NYSE:DVN) 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.

Disclosure: None

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