Hedge Funds Are Betting On Blackrock Corporate High Yield Fund Inc (HYT)

As one would reasonably expect, key money managers have jumped into Blackrock Corporate High Yield Fund Inc (NYSE:HYT) headfirst. Luminus Management, managed by Jonathan Barrett and Paul Segal, created the most outsized position in Blackrock Corporate High Yield Fund Inc (NYSE:HYT). Luminus Management had $1.2 million invested in the company at the end of the quarter. Allan Teh’s Kamunting Street Capital also made a $0.2 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Blackrock Corporate High Yield Fund Inc (NYSE:HYT) but similarly valued. These stocks are REX American Resources Corp (NYSE:REX), LSB Industries, Inc. (NYSE:LXU), Tristate Capital Holdings Inc (NASDAQ:TSC), and SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN). This group of stocks’ market values matches Blackrock Corporate High Yield Fund Inc (NYSE:HYT)’s market value.

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $41 million. That figure was $90 million in Blackrock Corporate High Yield Fund Inc (NYSE:HYT)’s case. LSB Industries, Inc. (NYSE:LXU) is the most popular stock in this table. On the other hand, REX American Resources Corp (NYSE:REX) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks, Blackrock Corporate High Yield Fund Inc (NYSE:HYT) is even less popular than REX American Resources Corp (NYSE:REX). 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.