Is Parsley Energy Inc (PE) Worthy of Your Portfolio?

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Passport Capital, managed by John Burbank, assembled the most valuable position in Parsley Energy Inc (NYSE:PE). Passport Capital had $85.6 million invested in the company at the end of the quarter. Anand Parekh’s Alyeska Investment Group also initiated a $61.2 million position during the quarter. The following funds were also among the new PE investors: Todd J. Kantor’s Encompass Capital Advisors, Neil Chriss’ Hutchin Hill Capital, and Ken Heebner’s Capital Growth Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Parsley Energy Inc (NYSE:PE) but similarly valued. We will take a look at EPR Properties (NYSE:EPR), Weingarten Realty Investors (NYSE:WRI), Opko Health Inc. (NYSE:OPK), and Axis Capital Holdings Limited (NYSE:AXS). All of these stocks’ market caps resemble PE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EPR 20 172099 -6
WRI 10 61668 0
OPK 20 56078 3
AXS 13 482259 2

As you can see these stocks had an average of 16 funds with long holdings at the end of September and the average amount invested in these stocks was $193 million, versus $1.14 billion in PE’s case. EPR Properties (NYSE:EPR) is the most popular stock in this table. On the other hand Weingarten Realty Investors (NYSE:WRI) is the least popular one with only 10 funds holding long positions. Compared to these stocks Parsley Energy Inc (NYSE:PE) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None