Is GasLog Partners LP (GLOP) Going to Burn These Hedge Funds?

Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and successful investors’ positions as of the end of the third quarter. You can find articles about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 5 years and analyze what the smart money thinks of GasLog Partners LP (NYSE:GLOP) based on that data.

GasLog Partners LP (NYSE:GLOP) was in 5 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 7. GLOP has seen a decrease in hedge fund interest recently. There were 7 hedge funds in our database with GLOP positions at the end of the second quarter. Our calculations also showed that GLOP isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 66 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 17th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

Paul Marshall Marshall Wace

Paul Marshall of Marshall Wace

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Keeping this in mind we’re going to take a peek at the fresh hedge fund action regarding GasLog Partners LP (NYSE:GLOP).

Hedge fund activity in GasLog Partners LP (NYSE:GLOP)

At third quarter’s end, a total of 5 of the hedge funds tracked by Insider Monkey were long this stock, a change of -29% from the previous quarter. By comparison, 7 hedge funds held shares or bullish call options in GLOP a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Renaissance Technologies held the most valuable stake in GasLog Partners LP (NYSE:GLOP), which was worth $0.3 million at the end of the third quarter. On the second spot was Citadel Investment Group which amassed $0.2 million worth of shares. Citadel Investment Group, Millennium Management, and Engineers Gate Manager were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Engineers Gate Manager allocated the biggest weight to GasLog Partners LP (NYSE:GLOP), around 0.0032% of its 13F portfolio. Marshall Wace LLP is also relatively very bullish on the stock, dishing out 0.0003 percent of its 13F equity portfolio to GLOP.

Since GasLog Partners LP (NYSE:GLOP) has faced bearish sentiment from hedge fund managers, it’s safe to say that there was a specific group of funds that elected to cut their positions entirely last quarter. It’s worth mentioning that Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dropped the biggest investment of the “upper crust” of funds followed by Insider Monkey, valued at an estimated $0.7 million in stock, and Michael Gelband’s ExodusPoint Capital was right behind this move, as the fund cut about $0.4 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to GasLog Partners LP (NYSE:GLOP). These stocks are Earthstone Energy, Inc. (NYSE:ESTE), Team, Inc. (NYSE:TISI), Axcella Health Inc. (NASDAQ:AXLA), Howard Bancorp Inc (NASDAQ:HBMD), Iteris Inc (NASDAQ:ITI), Centennial Resource Development, Inc. (NASDAQ:CDEV), and KVH Industries, Inc. (NASDAQ:KVHI). All of these stocks’ market caps are closest to GLOP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ESTE 3 3571 -3
TISI 15 45652 3
AXLA 3 672 -2
HBMD 4 11065 -1
ITI 11 19098 -2
CDEV 14 20635 -6
KVHI 4 4825 0
Average 7.7 15074 -1.6

View table here if you experience formatting issues.

As you can see these stocks had an average of 7.7 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $1 million in GLOP’s case. Team, Inc. (NYSE:TISI) is the most popular stock in this table. On the other hand Earthstone Energy, Inc. (NYSE:ESTE) is the least popular one with only 3 bullish hedge fund positions. GasLog Partners LP (NYSE:GLOP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for GLOP is 32.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through November 27th and surpassed the market again by 16.1 percentage points. Unfortunately GLOP wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); GLOP investors were disappointed as the stock returned -16.9% since the end of September (through 11/27) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.

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Disclosure: None. This article was originally published at Insider Monkey.