Is Continental Resources, Inc. (CLR) Going to Burn These Hedge Funds?

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 third 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 6 years and analyze what the smart money thinks of Continental Resources, Inc. (NYSE:CLR) based on that data.

Is Continental Resources, Inc. (NYSE:CLR) going to take off soon? Prominent investors were turning bullish. The number of bullish hedge fund positions inched up by 1 lately. Continental Resources, Inc. (NYSE:CLR) was in 24 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 50. Our calculations also showed that CLR isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).

Ken Heebner of Capital Growth Management

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 regarding Continental Resources, Inc. (NYSE:CLR).

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

At the end of September, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a change of 4% from the previous quarter. By comparison, 25 hedge funds held shares or bullish call options in CLR a year ago. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were adding to their holdings meaningfully (or already accumulated large positions).

Is CLR A Good Stock To Buy?

The largest stake in Continental Resources, Inc. (NYSE:CLR) was held by D E Shaw, which reported holding $69.2 million worth of stock at the end of September. It was followed by Millennium Management with a $32.5 million position. Other investors bullish on the company included Citadel Investment Group, Two Sigma Advisors, and Carlson Capital. In terms of the portfolio weights assigned to each position Birchview Capital allocated the biggest weight to Continental Resources, Inc. (NYSE:CLR), around 1.21% of its 13F portfolio. Hourglass Capital is also relatively very bullish on the stock, designating 0.66 percent of its 13F equity portfolio to CLR.

As aggregate interest increased, key money managers were leading the bulls’ herd. Cinctive Capital Management, managed by Richard SchimeláandáLawrence Sapanski, created the most outsized position in Continental Resources, Inc. (NYSE:CLR). Cinctive Capital Management had $4.8 million invested in the company at the end of the quarter. Benjamin A. Smith’s Laurion Capital Management also initiated a $3.1 million position during the quarter. The following funds were also among the new CLR investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Ken Heebner’s Capital Growth Management.

Let’s also examine hedge fund activity in other stocks similar to Continental Resources, Inc. (NYSE:CLR). We will take a look at Wheaton Precious Metals Corp. (NYSE:WPM), Boston Properties, Inc. (NYSE:BXP), ASE Technology Holding Co., Ltd. (NYSE:ASX), Carlyle Group Inc (NASDAQ:CG), Ceridian HCM Holding Inc. (NYSE:CDAY), Celanese Corporation (NYSE:CE), and Bath & Body Works Inc. (NYSE:BBWI). This group of stocks’ market values resemble CLR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WPM 27 347520 1
BXP 21 1471101 2
ASX 10 271536 3
CG 34 1401572 13
CDAY 20 1798355 -5
CE 26 735190 -11
BBWI 56 6556642 3
Average 27.7 1797417 0.9

View table here if you experience formatting issues.

As you can see these stocks had an average of 27.7 hedge funds with bullish positions and the average amount invested in these stocks was $1797 million. That figure was $166 million in CLR’s case. Bath & Body Works Inc. (NYSE:BBWI) is the most popular stock in this table. On the other hand ASE Technology Holding Co., Ltd. (NYSE:ASX) is the least popular one with only 10 bullish hedge fund positions. Continental Resources, Inc. (NYSE:CLR) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CLR is 35.6. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. 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 31.1% in 2021 through December 9th and surpassed the market again by 5.1 percentage points. Unfortunately CLR wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); CLR investors were disappointed as the stock returned -0.4% since the end of September (through 12/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.

Follow Continental Resources Inc (NYSE:CLR)

Suggested Articles:

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