San Juan Basin Royalty Trust (SJT): Is It A Good Stock to Buy?

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Seeing as San Juan Basin Royalty Trust (NYSE:SJT) has weathered declining sentiment from hedge fund managers, it’s easy to see that there was a specific group of hedgies who were dropping their entire stakes last quarter. Interestingly, First Eagle Investment Management sold off the largest stake of all the hedgies watched by Insider Monkey, totaling an estimated $39.6 million in stock. Millennium Management, one of the largest hedge funds in the world, also dropped its stock, about $0.1 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as San Juan Basin Royalty Trust (NYSE:SJT) but similarly valued. We will take a look at Oil-Dri Corporation of America (NYSE:ODC), Mitek Systems, Inc. (NASDAQ:MITK), AxoGen, Inc. (NASDAQ:AXGN), and Parker Drilling Company (NYSE:PKD). This group of stocks’ market values are similar to SJT’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ODC 5 43673 0
MITK 17 31319 -1
AXGN 11 40283 4
PKD 11 11381 2

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $9 million in SJT’s case. Mitek Systems, Inc. (NASDAQ:MITK) is the most popular stock in this table. On the other hand Oil-Dri Corporation of America (NYSE:ODC) is the least popular one with only 5 bullish hedge fund positions. San Juan Basin Royalty Trust (NYSE:SJT) 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 MITK might be a better candidate to consider taking a long position in.

Disclosure: None

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