Is Black Stone Minerals LP (BSM) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. Interestingly, Daniel S. Och’s OZ Management got rid of the biggest stake of all the investors followed by Insider Monkey, totaling about $9.5 million in stock, and George Hall’s Clinton Group was right behind this move, as the fund dumped about $0.5 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Black Stone Minerals LP (NYSE:BSM) but similarly valued. We will take a look at Sensient Technologies Corporation (NYSE:SXT), Olin Corporation (NYSE:OLN), Cameco Corporation (USA) (NYSE:CCJ), and Cavium Inc (NASDAQ:CAVM). This group of stocks’ market caps are similar to BSM’s market cap.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $428 million. That figure was $21 million in BSM’s case. Cavium Inc (NASDAQ:CAVM) is the most popular stock in this table. On the other hand Sensient Technologies Corporation (NYSE:SXT) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Black Stone Minerals LP (NYSE:BSM) is even less popular than SXT. 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.

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Disclosure: None