A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on American Midstream Partners LP (NYSE:AMID).
Is American Midstream Partners LP (NYSE:AMID) a marvelous investment today? Hedge funds seem to be taking a bullish view. The number of investors tracked by us long the stock went up by two last quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Ring Energy Inc (NYSEMKT:REI), Hawkins, Inc. (NASDAQ:HWKN), and MFS Multimarket Income Trust (NYSE:MMT) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, let’s take a glance at the key action encompassing American Midstream Partners LP (NYSE:AMID).
What have hedge funds been doing with American Midstream Partners LP (NYSE:AMID)?
At the end of the third quarter, six hedge funds tracked by Insider Monkey were long this stock, which represents an increase of 50% from the previous quarter. On the other hand, there was just one fund holding shares of AMID at the beginning of this year. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Michael Price’s MFP Investors has the most valuable position in American Midstream Partners LP (NYSE:AMID), worth close to $7.7 million, comprising 1% of its total 13F portfolio. Coming in second is Renaissance Technologies, one of the largest hedge funds in the world, which holds a $3.4 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other members of the smart money that hold long positions comprise Richard Driehaus’ Driehaus Capital, Matthew Hulsizer’s PEAK6 Capital Management, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital. We should note that MFP Investors is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
As one would reasonably expect, specific money managers have been driving this bullishness. Driehaus Capital established the most outsized position in American Midstream Partners LP (NYSE:AMID) which had $1.8 million invested in the company at the end of the quarter. Springbok Capital also initiated a $0.5 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as American Midstream Partners LP (NYSE:AMID) but similarly valued. We will take a look at Ring Energy Inc (NYSEMKT:REI), Hawkins, Inc. (NASDAQ:HWKN), MFS Multimarket Income Trust (NYSE:MMT), and Vocera Communications Inc (NYSE:VCRA). All of these stocks’ market caps are closest to AMID’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| REI | 11 | 62613 | 3 |
| HWKN | 4 | 48394 | -1 |
| MMT | 4 | 23633 | 4 |
| VCRA | 15 | 56938 | 1 |
As you can see these stocks had an average of eight hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $14 million in AMID’s case. Vocera Communications Inc (NYSE:VCRA) is the most popular stock in this table. On the other hand Hawkins, Inc. (NASDAQ:HWKN) and MFS Multimarket Income Trust (NYSE:MMT) are the least popular with only four bullish hedge fund positions. American Midstream Partners LP (NYSE:AMID) 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 VCRA might be a better candidate to consider taking a long position in.
Disclosure: None
