Is ONEOK, Inc. (OKE) Going to Burn You?

Because ONEOK, Inc. (NYSE:OKE) has gone through falling interest from hedge fund managers, logic holds that there lies a certain “tier” of hedgies that slashed their entire stakes in the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group cashed in the largest stake of the 700 funds followed by Insider Monkey, totaling an estimated $8.4 million in call options, while retaining its long position. Curtis Macnguyen’s fund, Ivory Capital (Investment Mgmt), also sold off its stock, about $5.9 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to ONEOK, Inc. (NYSE:OKE). We will take a look at Medivation Inc (NASDAQ:MDVN), Lennar Corporation (NYSE:LEN), Best Buy Co., Inc. (NYSE:BBY), and UDR, Inc. (NYSE:UDR). All of these stocks’ market caps resemble OKE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MDVN 1 1850 -64
LEN 48 1132322 8
BBY 40 792943 11
UDR 14 151008 1

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $520 million. That figure was $73 million in OKE’s case. Lennar Corporation (NYSE:LEN) is the most popular stock in this table. On the other hand Medivation Inc (NASDAQ:MDVN) is the least popular one with only 1 bullish hedge fund positions. ONEOK, Inc. (NYSE:OKE) 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 LEN might be a better candidate to consider taking a long position in.

Disclosure: None