Hedge Funds Aren’t Crazy About Matador Resources Co (MTDR) Anymore

Due to the fact that Matador Resources Co (NYSE:MTDR) has witnessed a declination in interest from the aggregate hedge fund industry, logic holds that there is a sect of hedge funds who sold off their full holdings heading into Q4. Intriguingly, Todd J. Kantor’s Encompass Capital Advisors cut the largest position of the “upper crust” of funds watched by Insider Monkey, worth close to $18.3 million in stock, and Kyle Bass’ Hayman Advisors was right behind this move, as the fund dropped about $15.8 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest dropped by 3 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Matador Resources Co (NYSE:MTDR). These stocks are Delek US Holdings, Inc. (NYSE:DK), Chimerix Inc (NASDAQ:CMRX), Tahoe Resources Inc (NYSE:TAHO), and St. Joe Company (NYSE:JOE). This group of stocks’ market values is closest to Matador Resources Co (NYSE:MTDR)’s market value.

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $323 million. That figure was $45 million in Matador Resources Co (NYSE:MTDR)’s case. Delek US Holdings, Inc. (NYSE:DK) is the most popular stock in this table. On the other hand, St. Joe Company (NYSE:JOE) is the least popular one with only 9 bullish hedge fund positions. Matador Resources Co (NYSE:MTDR) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Delek US Holdings, Inc. (NYSE:DK) might be a better candidate to consider a long position.