Is Cabot Oil & Gas Corporation (COG) A Good Stock To Buy?

Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. These stocks have been on a tear since the end of June, outperforming large-cap index funds by more than 10 percentage points. That’s why we pay special attention to hedge fund activity in these stocks.

Cabot Oil & Gas Corporation (NYSE:COG) was in 35 hedge funds’ portfolios at the end of September. COG has seen a decrease in enthusiasm from smart money lately. There were 36 hedge funds in our database with COG holdings at the end of the previous quarter. At the end of this article we will also compare COG to other stocks including Agnico-Eagle Mines Limited (USA) (NYSE:AEM), Principal Financial Group Inc (NYSE:PFG), and Advance Auto Parts, Inc. (NYSE:AAP) to get a better sense of its popularity.

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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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With all of this in mind, we’re going to take a look at the latest action surrounding Cabot Oil & Gas Corporation (NYSE:COG).

What have hedge funds been doing with Cabot Oil & Gas Corporation (NYSE:COG)?

At Q3’s end, a total of 35 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -3% from one quarter earlier. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

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According to Insider Monkey’s hedge fund database, Viking Global, managed by Andreas Halvorsen, holds the biggest position in Cabot Oil & Gas Corporation (NYSE:COG). Viking Global has a $928.8 million position in the stock, comprising 4% of its 13F portfolio. Coming in second is Stelliam Investment Management, managed by Ross Margolies, which holds a $142.5 million position; 4.8% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish encompass Zach Schreiber’s Point State Capital, Robert Pitts’ Steadfast Capital Management and Kamyar Khajavi’s MIK Capital.