Why Bonanza Creek Energy Inc (BCEI)’s Stock Slid on Tuesday?

According to Insider Monkey’s hedge fund database, Jeffrey Tannenbaum’s Fir Tree has the largest position in Bonanza Creek Energy Inc (NYSE:BCEI), worth close to $3.2 million, comprising 0.1% of its total 13F portfolio. The second largest stake is held by Renaissance Technologies, led by Jim Simons, holding a $2.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other members of the smart money that are bullish encompass Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners, Jeffrey E. Eberwein’s Lone Star Value Management and Israel Englander’s Millennium Management.

On the other hand, there was a specific group of fund managers who were dropping their positions entirely in the fourth quarter. At the top of the heap, David Costen Haley’s HBK Investments cut the largest position of the 700 funds tracked by Insider Monkey, comprising an estimated $9.7 million in stock. John Thiessen’s fund, Vertex One Asset Management, also dropped its stock, about $7.4 million worth.

Let’s now review hedge fund activity in other stocks similar to Bonanza Creek Energy Inc (NYSE:BCEI). We will take a look at Jason Industries Inc (NASDAQ:JASN), Mesabi Trust (NYSE:MSB), Alimera Sciences Inc (NASDAQ:ALIM), and InfuSystem Holdings, Inc. (NYSEAMEX:INFU). This group of stocks’ market values match BCEI’s market value.

As you can see these stocks had an average of six hedge funds with bullish positions and the average amount invested in these stocks was $16 million. That figure was $12 million in BCEI’s case. Jason Industries Inc (NASDAQ:JASN) is the most popular stock in this table. On the other hand Alimera Sciences Inc (NASDAQ:ALIM) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Bonanza Creek Energy Inc (NYSE:BCEI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None