Usa Compression Partners LP (USAC): Hedge Fund Sentiment Unchanged

We view hedge fund activity in the stock as unfavorable, despite the fact that three funds have increased their investement in the company, while only one, Grt Capital Partners, cut its stake. The biggest increase was reported by Matthew Hulsizer’s PEAK6 Capital Management, up by 778% during the quarter, while Jim Simons’ Renaissance Technologies was right behind with a 374% increase to 88,013 shares valued at $1.27 million. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Usa Compression Partners LP (NYSE:USAC) but similarly valued. These stocks are Global Indemnity plc (NASDAQ:GBLI), Urstadt Biddle Properties Inc (NYSE:UBA), Solar Capital Ltd. (NASDAQ:SLRC), and Team, Inc. (NYSE:TISI). This group of stocks’ market caps are closest to USAC’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $37 million. That figure was a meager $6 million in USAC’s case. Team, Inc. (NYSE:TISI) is the most popular stock in this table. On the other hand Global Indemnity plc (NASDAQ:GBLI) and Urstadt Biddle Properties Inc (NYSE:UBA) are the least popular ones with only 5 bullish hedge fund positions. Compared to these stocks Usa Compression Partners LP (NYSE:USAC) is even less popular than GBLI. 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 warranted.