Hedge Funds Are Betting On Crescent Point Energy Corp (CPG)

As one would reasonably expect, specific money managers were breaking ground themselves. Waratah Capital Advisors, managed by Brad Dunkley and Blair Levinsky, assembled the largest position in Crescent Point Energy Corp (NYSE:CPG). Waratah Capital Advisors had $30.7 million invested in the company at the end of the quarter. Vertex One Asset Management also initiated its position during the quarter. The other funds with new positions in the stock are Vince Maddi and Shawn Brennan’s SIR Capital Management, Steve Cohen’s Point72 Asset Management, and Noam Gottesman’s GLG Partners.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Crescent Point Energy Corp (NYSE:CPG) but similarly valued. These stocks are Avnet, Inc. (NYSE:AVT), United Rentals, Inc. (NYSE:URI), Tableau Software Inc (NYSE:DATA), and Commscope Holding Company Inc (NASDAQ:COMM). All of these stocks’ market caps resemble CPG’s market cap.

As you can see these stocks had an average of 42 hedge funds with bullish positions and the average amount invested in these stocks was $1.18 billion, versus just $90 million in CPG’s case. United Rentals, Inc. (NYSE:URI) is the most popular stock in this table, while Avnet, Inc. (NYSE:AVT) is the least popular one with only 31 bullish hedge fund positions. Compared to these stocks Crescent Point Energy Corp (NYSE:CPG) is even less popular than AVT. 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 required.