Although the Kuwait oil workers strike might be over, the crude bull market is raging on. WTI futures have hit a monthly high of $42.70 per barrel, and the broader markets are slightly higher because of it. Among the stocks leading the way in Wednesday’s action are Freeport-McMoRan Inc (NYSE:FCX), Hansen Medical, Inc. (NASDAQ:HNSN), Manhattan Associates, Inc. (NASDAQ:MANH), Intrepid Potash, Inc. (NYSE:IPI), and SolarCity Corp (NASDAQ:SCTY). Let’s find out why traders are buying these equities and see how hedge funds are positioned in each stock.
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Rising Crude Prices Help Freeport-McMoRan
Freeport-McMoRan Inc (NYSE:FCX) is 3% higher today on the back of higher WTI prices. Today’s EIA numbers showed a 2.1 million-barrel increase in crude inventories last week, better than both the API’s estimate of 3.1 million barrels of inventory and analysts’ expectations of 2.4 million barrels. The EIA numbers also showed a 3.6 million-barrel drop in distillates versus the expected 0.3 million-barrel increase. The bullish numbers were enough to send energy prices higher despite the strike in Kuwait ending. Freeport-McMoRan Inc (NYSE:FCX) benefits from the higher prices because it hasn’t sold its oil and gas operations yet. 37 top funds that we track in our database owned Freeport-McMoRan at the end of December, with Carl Icahn‘s Icahn Capital LP among them.
Auris Surgical Robotics to Acquire Hansen
Hansen Medical, Inc. (NASDAQ:HNSN) shares have surged by almost 39% out of the gate after Auris Surgical Robotics announced that it will acquire the company in an equity deal worth around $80 million or $4.00 per share. The deal is expected to close by mid-2016. Both companies develop intravascular robotics systems, which is a burgeoning growth market. Two elite funds in our system owned $1.35 million worth of Hansen Medical, Inc. (NASDAQ:HNSN)’s shares at the end of 2015.
On the next page we examine why Manhattan Associates Inc, Intrepid Potash Inc, and SolarCity are making moves up today.