Why Are Investors Becoming Optimistic On These Stocks?

Despite analysts at Seaport Global Securities downgraded the company to ‘Neutral’ from ‘Buy’, Seadrill Partners LLC (NYSE:SDLP) is trading higher by more than 12%. However, the company has suffered a tremendous drop in the last 20 days. Overall, the company’s shares have fallen by 78% on a year-to-date basis. Hedge fund sentiment has stayed steady, as the number of funds long the stock remained unchanged at six at the end of the third quarter. Together they hold some 0.4% of the company’s common stock.

After a disastrous day in the stock market yesterday, with shares crumbling by over 60%, Teekay Corporation (NYSE:TK)‘s stock has slightly recovered and has gained almost 20% so far today. The company has recently cut its dividend by 90% to $0.22. In addition, the company has received multiple downgrades from analysts at Wells Fargo, Seaport Global Securities, Credit Suisse and RBC Capital. Hedge funds have been more pessimistic about the stock recently, with 19 funds long Teekay Corporation (NYSE:TK) at the end of the third quarter, down from 23 funds a quarter earlier. Alec Litowitz and Ross Laser‘s Magnetar Capital reported owning 6.53 million shares valued at $193.48 million as of the end of September.

Disclosure: none.