Is 8Point3 Energy Partners LP (CAFD) Going to Burn These Hedge Funds?

Because 8Point3 Energy Partners LP (NASDAQ:CAFD) has faced a bearish sentiment from hedge fund managers, it’s easy to see that there were a few hedge funds who were dropping their full holdings heading into Q4. It’s worth mentioning that Stuart J. Zimmer’s Zimmer Partners cut the largest position of all the hedgies followed by Insider Monkey, valued at about $13.5 million in stock, and Steve Cohen’s mutual fund, Point72 Asset Management, was right behind this move, as the fund dumped about $6.9 million worth of shares. These transactions are interesting, as total hedge fund interest dropped by 5 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to 8Point3 Energy Partners LP (NASDAQ:CAFD). We will take a look at Quality Systems, Inc. (NASDAQ:QSII), Leju Holdings Ltd (ADR) (NYSE:LEJU), U.S. Silica Holdings Inc (NYSE:SLCA), and RPX Corp (NASDAQ:RPXC). This group of stocks’ market valuations resembles 8Point3 Energy Partners LP (NASDAQ:CAFD)’s market valuation.

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $90 million. That figure was $42 million in 8Point3 Energy Partners LP (NASDAQ:CAFD)’s case. U.S. Silica Holdings Inc (NYSE:SLCA) is the most popular stock in this table. On the other hand, Leju Holdings Ltd (ADR) (NYSE:LEJU) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks, 8Point3 Energy Partners LP (NASDAQ:CAFD) is even less popular than Leju Holdings Ltd (ADR) (NYSE:LEJU). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.