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

Judging by the fact that Capital Product Partners L.P. (NASDAQ:CPLP) has experienced a decline in interest from hedge fund managers, it’s easy to see that there were a few funds who were dropping their positions entirely last quarter. It’s worth mentioning that Israel Englander’s Millennium Management said goodbye to the largest investment of the “upper crust” of funds followed by Insider Monkey, valued at close to $0.3 million in stock, and Bruce Silver’s Silver Capital Management LLC was right behind this move, as the fund dumped about $0.2 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Capital Product Partners L.P. (NASDAQ:CPLP). We will take a look at Sun Hydraulics Corporation (NASDAQ:SNHY), 8×8, Inc. (NASDAQ:EGHT), MacroGenics Inc (NASDAQ:MGNX), and Hercules Technology Growth Capital Inc (NYSE:HTGC). This group of stocks’ market caps resemble CPLP’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $87 million. That figure was just $7 million in CPLP’s case. MacroGenics Inc (NASDAQ:MGNX) is the most popular stock in this table, while Sun Hydraulics Corporation (NASDAQ:SNHY) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Capital Product Partners L.P. (NASDAQ:CPLP) is even less popular than SNHY. 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 required.