Is CVR Refining LP (CVRR) Going To Burn These Hedge Funds?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dropped their entire stakes in the stock during the third quarter. Intriguingly, Jim Simons’ Renaissance Technologies dropped the largest investment of all the hedgies monitored by Insider Monkey, valued at an estimated $2.8 million in stock.

Let’s also examine hedge fund activity in other stocks similar to CVR Refining LP (NYSE:CVRR). We will take a look at Flow International Corporation (NASDAQ:FLOW), Methode Electronics Inc. (NYSE:MEI), Denbury Resources Inc. (NYSE:DNR), and Apogee Enterprises, Inc. (NASDAQ:APOG). This group of stocks’ market caps resemble CVRR’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FLOW 17 132679 2
MEI 15 118796 -1
DNR 18 65600 -3
APOG 14 71670 1

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $97 million. That figure was $52 million in CVRR’s case. Denbury Resources Inc. (NYSE:DNR) is the most popular stock in this table. On the other hand Apogee Enterprises, Inc. (NASDAQ:APOG) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks CVR Refining LP (NYSE:CVRR) is even less popular than APOG. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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