Here is What Hedge Funds Think About EOG Resources Inc (EOG)

Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips or bumps on the charts usually don’t make them change their opinion towards a company. This time it may be different. The coronavirus pandemic destroyed the high correlations among major industries and asset classes. We are now in a stock pickers market where fundamentals of a stock have more effect on the price than the overall direction of the market. As a result we observe sudden and large changes in hedge fund positions depending on the news flow. Let’s take a look at the hedge fund sentiment towards EOG Resources Inc (NYSE:EOG) to find out whether there were any major changes in hedge funds’ views.

EOG Resources Inc (NYSE:EOG) was in 47 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 60. EOG has experienced an increase in hedge fund sentiment recently. There were 35 hedge funds in our database with EOG holdings at the end of June. Our calculations also showed that EOG isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now we’re going to analyze the fresh hedge fund action surrounding EOG Resources Inc (NYSE:EOG).

Do Hedge Funds Think EOG Is A Good Stock To Buy Now?

Heading into the fourth quarter of 2021, a total of 47 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 34% from one quarter earlier. On the other hand, there were a total of 36 hedge funds with a bullish position in EOG a year ago. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).

The largest stake in EOG Resources Inc (NYSE:EOG) was held by D E Shaw, which reported holding $257.8 million worth of stock at the end of September. It was followed by GLG Partners with a $179.3 million position. Other investors bullish on the company included AQR Capital Management, Renaissance Technologies, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Mountain Lake Investment Management allocated the biggest weight to EOG Resources Inc (NYSE:EOG), around 5.55% of its 13F portfolio. Capital Growth Management is also relatively very bullish on the stock, dishing out 2.8 percent of its 13F equity portfolio to EOG.

As industrywide interest jumped, specific money managers have been driving this bullishness. Renaissance Technologies, established the biggest position in EOG Resources Inc (NYSE:EOG). Renaissance Technologies had $60.5 million invested in the company at the end of the quarter. Anand Parekh’s Alyeska Investment Group also initiated a $49.8 million position during the quarter. The following funds were also among the new EOG investors: Dmitry Balyasny’s Balyasny Asset Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Ken Heebner’s Capital Growth Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as EOG Resources Inc (NYSE:EOG) but similarly valued. These stocks are Palo Alto Networks Inc (NASDAQ:PANW), IHS Markit Ltd. (NYSE:INFO), Global Payments Inc (NYSE:GPN), IQVIA Holdings, Inc. (NYSE:IQV), Synopsys, Inc. (NASDAQ:SNPS), BCE Inc. (NYSE:BCE), and eBay Inc (NASDAQ:EBAY). This group of stocks’ market values are similar to EOG’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 54 hedge funds with bullish positions and the average amount invested in these stocks was $3488 million. That figure was $1025 million in EOG’s case. Palo Alto Networks Inc (NASDAQ:PANW) is the most popular stock in this table. On the other hand BCE Inc. (NYSE:BCE) is the least popular one with only 15 bullish hedge fund positions. EOG Resources Inc (NYSE:EOG) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for EOG is 61.1. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. A small number of hedge funds were also right about betting on EOG as the stock returned 8.9% since the end of the third quarter (through 11/30) and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.