Hedge Funds Are Dumping Atlas Energy LP (ATLS): Inergy, L.P. (NRGY), Suburban Propane Partners LP (SPH)

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Atlas Energy LP (NYSE:ATLS) was in 11 hedge funds’ portfolio at the end of the fourth quarter of 2012. ATLS shareholders have witnessed a decrease in hedge fund interest of late. There were 11 hedge funds in our database with ATLS positions at the end of the previous quarter.

Atlas Energy LP (NYSE:ATLS)In the financial world, there are dozens of indicators shareholders can use to analyze publicly traded companies. A pair of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outclass the market by a solid margin (see just how much).

Equally as beneficial, positive insider trading sentiment is a second way to break down the marketplace. Obviously, there are lots of stimuli for a bullish insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Several academic studies have demonstrated the useful potential of this tactic if you know where to look (learn more here).

Now, we’re going to take a glance at the recent action encompassing Atlas Energy LP (NYSE:ATLS).

What have hedge funds been doing with Atlas Energy LP (NYSE:ATLS)?

Heading into 2013, a total of 11 of the hedge funds we track were bullish in this stock, a change of 0% from the third quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially.

When looking at the hedgies we track, Omega Advisors, managed by Leon Cooperman, holds the largest position in Atlas Energy LP (NYSE:ATLS). Omega Advisors has a $135.3 million position in the stock, comprising 2.5% of its 13F portfolio. Coming in second is Wayne Cooperman of Cobalt Capital Management, with a $35.6 million position; 3.1% of its 13F portfolio is allocated to the company. Other hedgies with similar optimism include Jean-Marie Eveillard’s First Eagle Investment Management, Remy Trafelet’s Trafelet Capital and Dmitry Balyasny’s Balyasny Asset Management.

Due to the fact that Atlas Energy LP (NYSE:ATLS) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of funds that slashed their full holdings heading into 2013. It’s worth mentioning that Mario Gabelli’s GAMCO Investors sold off the biggest stake of all the hedgies we track, worth an estimated $1.2 million in stock. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Atlas Energy LP (NYSE:ATLS)?

Insider buying is most useful when the company in focus has seen transactions within the past 180 days. Over the last half-year time frame, Atlas Energy LP (NYSE:ATLS) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Atlas Energy LP (NYSE:ATLS). These stocks are Inergy, L.P. (NYSE:NRGY), Suburban Propane Partners LP (NYSE:SPH), Piedmont Natural Gas Company, Inc. (NYSE:PNY), Southwest Gas Corporation (NYSE:SWX), and WGL Holdings Inc (NYSE:WGL). This group of stocks are the members of the gas utilities industry and their market caps are closest to ATLS’s market cap.

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