Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the first quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 4.5 years and analyze what the smart money thinks of EOG Resources Inc (NYSE:EOG) based on that data.
EOG Resources Inc (NYSE:EOG) investors should be aware of an increase in support from the world’s most elite money managers of late. Our calculations also showed that EOG isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
To the average investor there are a large number of formulas shareholders have at their disposal to grade publicly traded companies. A couple of the best formulas are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the best picks of the top investment managers can outclass the market by a very impressive margin (see the details here).
John Overdeck of Two Sigma Advisors
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we are still not out of the woods in terms of the coronavirus pandemic. So, we checked out this successful trader’s “corona catalyst plays“. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. With all of this in mind let’s take a gander at the new hedge fund action regarding EOG Resources Inc (NYSE:EOG).
Hedge fund activity in EOG Resources Inc (NYSE:EOG)
Heading into the second quarter of 2020, a total of 44 of the hedge funds tracked by Insider Monkey were long this stock, a change of 2% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in EOG over the last 18 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Two Sigma Advisors was the largest shareholder of EOG Resources Inc (NYSE:EOG), with a stake worth $112.9 million reported as of the end of September. Trailing Two Sigma Advisors was D E Shaw, which amassed a stake valued at $111.9 million. Citadel Investment Group, Lyrical Asset Management, and Encompass Capital Advisors were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Encompass Capital Advisors allocated the biggest weight to EOG Resources Inc (NYSE:EOG), around 7.42% of its 13F portfolio. Lyrical Asset Management is also relatively very bullish on the stock, setting aside 2.38 percent of its 13F equity portfolio to EOG.
Now, specific money managers were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, created the biggest position in EOG Resources Inc (NYSE:EOG). Citadel Investment Group had $96.9 million invested in the company at the end of the quarter. Todd J. Kantor’s Encompass Capital Advisors also initiated a $69.1 million position during the quarter. The following funds were also among the new EOG investors: Dmitry Balyasny’s Balyasny Asset Management, Benjamin A. Smith’s Laurion Capital Management, and Greg Eisner’s Engineers Gate Manager.
Let’s also examine hedge fund activity in other stocks similar to EOG Resources Inc (NYSE:EOG). These stocks are Zimmer Biomet Holdings Inc (NYSE:ZBH), IQVIA Holdings, Inc. (NYSE:IQV), ZTO Express (Cayman) Inc. (NYSE:ZTO), and AvalonBay Communities Inc (NYSE:AVB). This group of stocks’ market caps match EOG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ZBH | 51 | 621129 | -13 |
| IQV | 60 | 2473750 | -4 |
| ZTO | 15 | 562997 | 1 |
| AVB | 30 | 377394 | 7 |
| Average | 39 | 1008818 | -2.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $1009 million. That figure was $801 million in EOG’s case. IQVIA Holdings, Inc. (NYSE:IQV) is the most popular stock in this table. On the other hand ZTO Express (Cayman) Inc. (NYSE:ZTO) is the least popular one with only 15 bullish hedge fund positions. EOG Resources Inc (NYSE:EOG) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 7.9% in 2020 through May 22nd but still beat the market by 15.6 percentage points. Hedge funds were also right about betting on EOG as the stock returned 46.8% in Q2 (through May 22nd) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
