Do Hedge Funds Love Resolute Energy Corp (REN)?

Since Resolute Energy Corp (NYSE:REN) has witnessed a declination in interest from the entirety of the hedge funds we track, we can see that there is a sect of funds that decided to sell off their entire stakes by the end of the third quarter. Interestingly, Paul Tudor Jones’s Tudor Investment Corp dropped the largest position of all the hedgies monitored by Insider Monkey, valued at about $0.1 million in stock, and Chao Ku’s Nine Chapters Capital Management made a similar move, as the fund dropped roughly $0.1 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 6 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Resolute Energy Corp (NYSE:REN). We will take a look at China Techfaith Wireless Comm. Tech. Ltd (NASDAQ:CNTF), Gevo, Inc. (NASDAQ:GEVO), AEterna Zentaris Inc. (USA) (NASDAQ:AEZS), and EnteroMedics Inc (NASDAQ:ETRM). This group of stocks’ market valuations are similar to REN’s market valuation.

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $3 million. That figure was $11 million in REN’s case. Gevo, Inc. (NASDAQ:GEVO) is the most popular stock in this table. On the other hand AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) and China Techfaith Wireless Comm. Tech. Ltd (NASDAQ:CNTF) are the least popular ones with only 4 bullish hedge fund positions each. Compared to these stocks Resolute Energy Corp (NYSE:REN) is more popular among hedge funds, while the amount they invested is substantially north of the average. 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.