Is Hi-Crush Partners LP (HCLP) A Good Stock To Buy?

Judging by the fact that Hi-Crush Partners LP (NYSE:HCLP) has weathered a decline in interest from the aggregate hedge fund industry, logic holds that there were a few fund managers that decided to sell off their entire stakes by the end of the third quarter. It’s worth mentioning that Phil Frohlich’s Prescott Group Capital Management got rid of the biggest stake of all the investors tracked by Insider Monkey, worth an estimated $2.1 million in stock, and Leon Cooperman’s Omega Advisors was right behind this move, as the fund cut about $1.3 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Hi-Crush Partners LP (NYSE:HCLP) but similarly valued. We will take a look at Tile Shop Hldgs, Inc. (NASDAQ:TTS), CenterState Banks Inc (NASDAQ:CSFL), Continental Building Products Inc (NYSE:CBPX), and Hanmi Financial Corp (NASDAQ:HAFC). This group of stocks’ market values are closest to HCLP’s market value.

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 $81 million. That figure was $73 million in HCLP’s case. Continental Building Products Inc (NYSE:CBPX) is the most popular stock in this table. On the other hand Hanmi Financial Corp (NASDAQ:HAFC) 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 CBPX might be a better candidate to consider taking a long position in.

Disclosure: None