Should You Buy Rex Energy (REXX) after Keystone Clearwater Solutions Deal?

How have hedgies been trading Rex Energy (NASDAQ:REXX)?

7 of the hedge funds we track at InsiderMonkey were bullish in Rex’s stock at the end of the first quarter. This is a change of -46% from one quarter earlier. Invested capital of the hedge funds’ also plummeted, to just $6.41 million from $22.20 million at the end of 2014. That represents a decrease of over 71%, during a quarter in which the shares of Rex decreased by 27%, so the decrease was well beyond just he stock losing value. As such, we can see that hedge funds were quite bearish on Rex Energy, in stark contrast to insiders.

According to Insider Monkey, Ryan Heslop and Ariel Warszawski’s Firefly Value Partners had the biggest position in Rex, worth around $2 million. Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners has the second-biggest position in the energy company, worth around $1.7 million, which makes up 0.3% of its 13F portfolio. Other hedge funds that hold long positions in Rex Energy (NASDAQ: REXX) include Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners, and D. E. Shaw’s D E Shaw.

Keeping in mind the latest downgrade and extremely bearish hedge fund sentiment, it’s hard to recommend Rex Energy at this time. However, with bullish insiders and a big move now in the books that the market is cheering, it’s hard to go against it also. We maintain a neutral position on the stock at this time.

Disclosure: None