Do Hedge Funds Love Kosmos Energy Ltd (KOS)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest investment of the “upper crust” of funds watched by Insider Monkey, comprising close to $1.6 million in Kosmos Energy Ltd (NYSE:KOS) stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also said goodbye to its stock, about $0.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Kosmos Energy Ltd (NYSE:KOS). These stocks are Essent Group Ltd (NYSE:ESNT), Valley National Bancorp (NYSE:VLY), Avon Products, Inc. (NYSE:AVP), and Genworth Financial Inc (NYSE:GNW). This group of stocks’ market values match KOS’s market value.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $193 million. That figure was $34 million in KOS’s case. Avon Products, Inc. (NYSE:AVP) is the most popular stock in this table. On the other hand Valley National Bancorp (NYSE:VLY) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Kosmos Energy Ltd (NYSE:KOS) is even less popular than VLY. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.