Usa Compression Partners LP (USAC): Are Hedge Funds Right About This Stock?

Page 2 of 2

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Usa Compression Partners LP (NYSE:USAC) but similarly valued. We will take a look at 8Point3 Energy Partners LP (NASDAQ:CAFD), The Andersons, Inc. (NASDAQ:ANDE), Repligen Corporation (NASDAQ:RGEN), and Royce Value Trust Inc (NYSE:RVT). This group of stocks’ market values match USAC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CAFD 12 47538 4
ANDE 12 48680 3
RGEN 14 63917 0
RVT 5 4413 1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $41 million. That figure was $11 million in USAC’s case. Repligen Corporation (NASDAQ:RGEN) is the most popular stock in this table. On the other hand Royce Value Trust Inc (NYSE:RVT) is the least popular one with only 5 bullish hedge fund positions. Usa Compression Partners LP (NYSE:USAC) 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 RGEN might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2