Hi-Crush Partners LP (HCLP): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, key hedge funds were breaking ground themselves. Millennium Management, managed by Israel Englander, assembled the largest position in Hi-Crush Partners LP (NYSE:HCLP). Millennium Management had $1.9 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital also initiated an $0 million position during the quarter.

Let’s check out hedge fund activity in other stocks similar to Hi-Crush Partners LP (NYSE:HCLP). These stocks are Pacific Ethanol Inc (NASDAQ:PEIX), KemPharm Inc (NASDAQ:KMPH), NeoPhotonics Corp (NYSE:NPTN), and Oppenheimer Holdings Inc. (USA) (NYSE:OPY). This group of stocks’ market caps resemble HCLP’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $43 million, vs. the $15 million in HCLP’s case. Pacific Ethanol Inc (NASDAQ:PEIX) is the most popular stock in this table. On the other hand KemPharm Inc (NASDAQ:KMPH) is the least popular one with only 8 bullish hedge fund positions. Hi-Crush Partners LP (NYSE:HCLP) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PEIX might be a better candidate to consider a long position.