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Is Steel Partners Holdings LP (SPLP) Going to Burn These Hedge Funds?

Consequently, some big names have been driving this bullishness. Raging Capital Management created the largest position in Steel Partners Holdings LP (NYSE:SPLP). Jonathan Kolatch’s Redwood Capital Management also made a $0.3 million investment in the stock during the quarter. The only other fund with a new position in the stock is Michael Price’s MFP Investors.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Steel Partners Holdings LP (NYSE:SPLP) but similarly valued. We will take a look at Timkensteel Corp (NYSE:TMST), WL Ross Holding Corp (NASDAQ:WLRHU), Star Bulk Carriers Corp. (NASDAQ:SBLK), and Ennis, Inc. (NYSE:EBF). All of these stocks’ market caps match SPLP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TMST 16 33449 3
WLRHU 19 109151 1
SBLK 6 297888 -2
EBF 14 22993 -2

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 $116 million. That figure was $74 million in SPLP’s case. WL Ross Holding Corp (NASDAQ:WLRHU) is the most popular stock in this table. On the other hand Star Bulk Carriers Corp. (NASDAQ:SBLK) is the least popular one with only 6 bullish hedge fund positions. Steel Partners Holdings LP (NYSE:SPLP) is not the least popular stock in this group, but hedge fund interest is considerably below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard WLRHU might be a better candidate to consider a long position.

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