Here is What Hedge Funds Think About Memorial Production Partners LP (MEMP)

Because Memorial Production Partners LP (NASDAQ:MEMP) has a witnessed falling interest from hedge fund managers, logic holds that there lies a certain “tier” of funds who were dropping their full holdings in the third quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest investment of the 700 funds tracked by Insider Monkey, comprising about $1.4 million in stock, and Robert B. Gillam’s McKinley Capital Management was right behind this move, as the fund cut about $0.5 million worth of shares. These moves are important to note, as total hedge fund interest fell by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Memorial Production Partners LP (NASDAQ:MEMP) but similarly valued. These stocks are Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX), Healthways, Inc. (NASDAQ:HWAY), and Accuray Incorporated (NASDAQ:ARAY). All of these stocks’ market caps are similar to Memorial Production Partners LP (NASDAQ:MEMP)’s market cap.

As you can see, these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $125 million. That figure was $10 million in Memorial Production Partners LP (NASDAQ:MEMP)’s case. Healthways, Inc. (NASDAQ:HWAY) is the most popular stock in this table. On the other hand, Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks, Memorial Production Partners LP (NASDAQ:MEMP) is even less popular than Progenics Pharmaceuticals, Inc. (NASDAQ:PGNX). Considering that hedge funds aren’t 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.