Hedge Funds Aren’t At All Fond of Seadrill Partners LLC (SDLP)

Seeing as Seadrill Partners LLC (NYSE:SDLP) has faced a declination in interest from the smart money, logic holds that there lies a certain “tier” of money managers who were dropping their full holdings by the end of the third quarter. Interestingly, Daniel S. Och’s OZ Management dropped the biggest investment of the 700 funds monitored by Insider Monkey, worth about $1.8 million in stock, and Renaissance Technologies was right behind this move, as the fund said goodbye to about $1.3 million worth of shares. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks similar to Seadrill Partners LLC (NYSE:SDLP). These stocks are Briggs & Stratton Corporation (NYSE:BGG), Orion Engineered Carbons SA (NYSE:OEC), Ebix Inc (NASDAQ:EBIX), and EnPro Industries, Inc. (NYSE:NPO). All of these stocks’ market caps are closest to Seadrill Partners LLC’s market cap.

As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $142 million. That figure was $4 million in Seadrill Partners LLC’s case. Briggs & Stratton Corporation (NYSE:BGG) is the most popular stock in this table. On the other hand Ebix Inc (NASDAQ:EBIX) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Seadrill Partners LLC (NYSE:SDLP) is even less popular than EBIX. Considering that hedge funds aren’t at all 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.