Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Phillips 66 (PSX) Going to Burn These Hedge Funds?

Judging by the fact that Phillips 66 (NYSE:PSX) has experienced a falling interest from hedge fund managers, logic holds that there was a specific group of hedgies that slashed their positions entirely heading into Q4. At the top of the heap, Dan Loeb’s Third Point said goodbye to the biggest investment of the “upper crust” of funds watched by Insider Monkey, worth close to $261.8 million in stock. Larry Robbins’ fund, Glenview Capital, also sold off its stock, about $147.4 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest was cut by 2 funds heading into Q4.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Phillips 66 (NYSE:PSX) but similarly valued. These stocks are Shire PLC (ADR) (NASDAQ:SHPG), Adobe Systems Incorporated (NASDAQ:ADBE), FedEx Corporation (NYSE:FDX), and The Southern Company (NYSE:SO). This group of stocks’ market values matches Phillips 66 (NYSE:PSX)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SHPG 43 2498587 -1
ADBE 42 4069926 3
FDX 53 4136169 1
SO 17 360541 -2

As you can see, these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $2.77 billion. That figure was $6.72 million in Phillips 66 (NYSE:PSX)’s case. FedEx Corporation (NYSE:FDX) is the most popular stock in this table. On the other hand, The Southern Company (NYSE:SO) is the least popular one with only 17 bullish hedge fund positions. Phillips 66 (NYSE:PSX) 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, FedEx Corporation (NYSE:FDX) might be a better candidate to consider a long position.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...