Magnum Hunter Resources Corp (MHR): Here Is Why MHR Is Jumping Today

What does the smart money think about Magnum Hunter Resources Corp (NYSE:MHR)?

At the end of the first quarter, a total of 10 of the hedge funds tracked by Insider Monkey were long in this stock, a drop of 33% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully.

According to hedge fund experts at Insider Monkey, the aforementioned Ralph V. Whitworth had the largest position in Magnum Hunter Resources Corp (NYSE:MHR), worth close to $80.7 million, comprising 3.4% of his total 13F portfolio. The second-most bullish hedge fund manager was Todd J. Kantor of Encompass Capital Advisors, with a $14.3 million position; the fund had 3.3% of its 13F portfolio invested in the stock. Other members of the smart money that were bullish included Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners, Robert Henry Lynch’s Aristeia Capital, and Robert Vollero and Gentry T. Beach‘s Vollero Beach Capital Partners.

While the gains today are nice, given the largely negative sentiment among funds, particularly of its largest shareholder who had previously left his position untouched for several quarters, it’s hard to get too excited about the rally. It will certainly give the company more stability and flexibility as it struggles to wait out depressed commodity prices, but there are still plenty of operational concerns and headwinds facing it. We don’t recommend a buy of this stock at his time.

Disclosure: None