Is Capital Product Partners L.P. (CPLP) Going to Burn These Hedge Funds?

Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips on the charts, usually don’t make them change their opinion towards a company. This time it may be different. During the third quarter we observed increased volatility and small-cap stocks underperformed the market. Hedge fund investor letters indicated that they are cutting their overall exposure, closing out some position and doubling down on others. Let’s take a look at the hedge fund sentiment towards Capital Product Partners L.P. (NASDAQ:CPLP) to find out whether it was one of their high conviction long-term ideas.

Capital Product Partners L.P. (NASDAQ:CPLP) has seen a decrease in hedge fund interest lately. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Sun Hydraulics Corporation (NASDAQ:SNHY), 8×8, Inc. (NASDAQ:EGHT), and MacroGenics Inc (NASDAQ:MGNX) to gather more data points.

In the eyes of most market participants, hedge funds are assumed to be worthless, outdated financial tools of yesteryear. While there are over an 8000 funds in operation at the moment, Our researchers look at the leaders of this club, approximately 700 funds. These investment experts administer bulk of all hedge funds’ total capital, and by paying attention to their highest performing investments, Insider Monkey has identified many investment strategies that have historically outrun the market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points per year for a decade in their back tests.

Now, let’s take a peek at the latest action surrounding Capital Product Partners L.P. (NASDAQ:CPLP).

Hedge fund activity in Capital Product Partners L.P. (NASDAQ:CPLP)

At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of -33% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes considerably (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Howard Marks’ Oaktree Capital Management has the number one position in Capital Product Partners L.P. (NASDAQ:CPLP), worth close to $3.8 million, accounting for less than 0.1%% of its total 13F portfolio. The second most bullish fund manager is Two Sigma Advisors, managed by John Overdeck and David Siegel, which holds a $2.3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Remaining professional money managers that are bullish encompass Robert B. Gillam’s McKinley Capital Management, Matthew Taylor and Ty Popplewell’s Kortright Capital Partners and Jim Simons’ Renaissance Technologies.