Should You Buy Halcon Resources Corporation (HK)?

As industrywide interest jumped, key money managers have been driving this bullishness. Brigade Capital assembled the most valuable position in Halcon Resources Corporation (NYSE:HK). Steve Cohen’s Point72 Asset Management also made a $4.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Richard Mashaal’s Rima Senvest Management, Marc Lasry’s Avenue Capital, and J. Alan Reid, Jr.’s Forward Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Halcon Resources Corporation (NYSE:HK) but similarly valued. We will take a look at American Capital Mortgage Investment Crp (NASDAQ:MTGE), Lindsay Corporation (NYSE:LNN), Triangle Capital Corporation (NYSE:TCAP), and U.S. Physical Therapy, Inc. (NYSE:USPH). All of these stocks’ market caps match HK’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $106 million in HK’s case. U.S. Physical Therapy, Inc. (NYSE:USPH) is the most popular stock in this table. On the other hand Triangle Capital Corporation (NYSE:TCAP) is the least popular one with only 6 bullish hedge fund positions. Halcon Resources Corporation (NYSE:HK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard USPH might be a better candidate to consider taking a long position in.

Disclosure: None