Seadrill Partners LLC (SDLP): How It Stacks Up Against Its Peers

Because Seadrill Partners LLC (NYSE:SDLP) has faced declining sentiment from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedgies that elected to cut their entire stakes in the third quarter. Interestingly, Daniel S. Och’s OZ Management sold off the largest investment of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $0.2 million in call options, while retaining its aforementioned long position (though it greatly reduced the size of that position also). Dmitry Balyasny’s Balyasny Asset Management was right behind that move, as the fund dropped about $0.1 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Seadrill Partners LLC (NYSE:SDLP) but similarly valued. These stocks are American Software, Inc. (NASDAQ:AMSWA), Enova International Inc (NYSE:ENVA), Monster Worldwide, Inc. (NYSE:MWW), and Nova Measuring Instruments Ltd. (NASDAQ:NVMI). This group of stocks’ market values resemble SDLP’s market value.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $2 million in SDLP’s case. Enova International Inc (NYSE:ENVA) is the most popular stock in this table. On the other hand American Software, Inc. (NASDAQ:AMSWA) is the least popular one with only 5 bullish hedge fund positions. Seadrill Partners LLC (NYSE:SDLP) is not the least popular stock in this group but hedge fund interest is still 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 ENVA and MWW might be better candidates to consider taking a long position in.

Disclosure: None