Hedge Funds Aren’t Crazy About Comstock Resources Inc (CRK) Anymore

Seeing as Comstock Resources Inc (NYSE:CRK) has faced falling interest from hedge fund managers, we can see that there were a few funds who were dropping their positions entirely heading into Q4. Intriguingly, Chuck Royce’s Royce & Associates dumped the largest stake of the 700 funds watched by Insider Monkey, comprising an estimated $2.2 million in stock, and Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners was right behind this move, as the fund cut about $1.9 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Comstock Resources Inc (NYSE:CRK). These stocks are PRGX Global Inc (NASDAQ:PRGX), Camtek LTD. (NASDAQ:CAMT), Frequency Electronics, Inc. (NASDAQ:FEIM), and DT Asia Investments Ltd (NASDAQ:CADTU). This group of stocks’ market caps are closest to CRK’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $12 million, compared to just $4 million in CRK’s case. PRGX Global Inc (NASDAQ:PRGX) is the most popular stock in this table. On the other hand Camtek LTD. (NASDAQ:CAMT) is the least popular one with only 4 bullish hedge fund positions. Comstock Resources Inc (NYSE:CRK) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PRGX might be a better candidate to consider a long position.