As industrywide interest jumped, key money managers have been driving this bullishness. Renaissance Technologies, managed by Jim Simons, created the most valuable position in Denbury Resources Inc. (NYSE:DNR). Renaissance Technologies had $11 million invested in the company at the end of the quarter. Ryan Heslop and Ariel Warszawski’s Firefly Value Partners also made a $2.4 million investment in the stock during the quarter. The following funds were also among the new DNR investors: Benjamin A. Smith’s Laurion Capital Management, Neil Chriss’ Hutchin Hill Capital, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Denbury Resources Inc. (NYSE:DNR) but similarly valued. We will take a look at Zafgen Inc (NASDAQ:ZFGN), PharMerica Corporation (NYSE:PMC), Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW), and HudBay Minerals Inc Ord Shs (NYSE:HBM). This group of stocks’ market valuations are similar to DNR’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was $70 million in DNR’s case. PharMerica Corporation (NYSE:PMC) is the most popular stock in this table. On the other hand HudBay Minerals Inc Ord Shs (NYSE:HBM) is the least popular one with only 7 bullish hedge fund positions. Denbury Resources Inc. (NYSE:DNR) 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 PMC might be a better candidate to consider a long position.