Is Teekay Offshore Partners L.P. (TOO) A Good Stock To Buy?

Judging by the fact that Teekay Offshore Partners L.P. (NYSE:TOO) has gone through staid sentiment from hedge fund managers, it’s safe to say that there was a specific group of hedgies that decided to sell off their positions entirely heading into Q4. At the top of the heap, John Overdeck and David Siegel’s Two Sigma Advisors cashed in the biggest stake of the 700 funds studied by Insider Monkey, valued at close to $0.2 million in stock. Ken Griffin’s fund, Citadel Investment Group, also cut its call options, about $0.1 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Teekay Offshore Partners L.P. (NYSE:TOO) but similarly valued. These stocks are Sun Hydraulics Corporation (NASDAQ:SNHY), Solar Capital Ltd. (NASDAQ:SLRC), Apollo Group Inc (NASDAQ:APOL), and PharMerica Corporation (NYSE:PMC). This group of stocks’ market values resemble TOO’s market value.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $119 million in TOO’s case. Apollo Group Inc (NASDAQ:APOL) is the most popular stock in this table. On the other hand Sun Hydraulics Corporation (NASDAQ:SNHY) is the least popular one with only 5 bullish hedge fund positions. Teekay Offshore Partners L.P. (NYSE:TOO) 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 APOL might be a better candidate to consider taking a long position in.

Disclosure: None