Hedge Funds Staying on Sidelines when It Comes to Coal Stocks

#4. Alliance Resource Partners L.P. (NASDAQ:ARLP)

– Investors with long positions as of March 31: 8

– Aggregate value of investors’ holdings as of March 31: $35.52 Million

The number of asset managers from our system with long positions in Alliance Resource Partners L.P. (NASDAQ:ARLP) remained unchanged at eight during the first three months of 2016, whereas the aggregate value of those positions fell 19% quarter-over-quarter to $35.52 million. The decrease was partially attributable to a 9% drop in the value of Alliance shares, so some funds trimmed their exposure to the company during the quarter. The diversified producer and marketer of coal in the eastern US has seen its market value jump by 21% since the beginning of 2016, but the stock is down 41% in the past year. Those investors who aren’t afraid of the dim prospects for the coal industry might be lured by Alliance’s annual dividend yield of 10.66%. The company makes a quarterly cash distribution of $0.4375 per unit. Bernard Selz’s Selz Capital reported owning 251,600 shares or units of Alliance Resource Partners L.P. (NASDAQ:ARLP) in its latest 13F.

#3. Cloud Peak Energy Inc. (NYSE:CLD)

– Investors with long positions as of March 31: 10

– Aggregate value of investors’ holdings as of March 31: $12.87 Million

The hedge fund sentiment towards Cloud Peak Energy Inc. (NYSE:CLD) didn’t change during the first quarter of 2016, with ten hedge fund vehicles followed by Insider Monkey being invested in the company at the end of both the December and March quarters. Meanwhile, the dollar value of those funds’ equity investments in Cloud Peak Energy rose to $12.87 million from $11.31 million quarter-over-quarter. The ten money managers invested in the company accumulated nearly 11% of its outstanding common stock. The US producer of coal has seen its market cap increase by 4% since the start of 2016, but the share price of the company’s stock is down a massive 48% in the past 52 weeks. Cloud Peak Energy operates solely in the Powder River Basin, said to be the lowest cost region of the major coal producing regions in the nation, with three surface coal mines. David Iben’s Kopernik Global Investors had 3.57 million shares of Cloud Peak Energy Inc. (NYSE:CLD) among its holdings at the end of March.