At a time when the S&P is down 2.16% and the Dow is off by almost 400 points, Sypris Solutions, Inc. (NASDAQ:SYPR), Atlas Resource Partners, L.P. (NYSE:ARP), Southwestern Energy Company (NYSE:SWN), General Steel Holdings Inc (NYSE:GSI), and FuelCell Energy Inc (NASDAQ:FCEL) are each surging on the back of different reasons. Let’s find out why.
In addition, let’s analyze hedge fund sentiment toward these stocks, if relevant. In the eyes of most traders, hedge funds are assumed to be underperforming, old investment tools of the past. While there are more than 8000 funds in operation at present, Hedge fund experts at Insider Monkey look at the aristocrats of this group, around 730 funds. Contrary to popular belief Insider Monkey’s research revealed that hedge funds underperformed in recent years because of their short positions as well as the huge fees that they charge. Hedge funds managed to outperform the market on the long side of their portfolio. In fact, the 15 most popular small-cap stocks among hedge funds returned 102% since the end of August 2012 and beat the S&P 500 Index by 53 percentage points (see the details here).
Leading off our list is Sypris Solutions, Inc. (NASDAQ:SYPR), whose shares have surged almost 30% in morning trading on no news. Because the company is a nano-cap stock and has a float of just 11.02 million shares, Sypris Solutions, Inc. (NASDAQ:SYPR)’s stock can move very quickly in one direction or the other if a big investor or trader decides to change his position in the company. Of the around 730 elite funds we track, two funds owned $637,000 worth of Sypris shares at the end of September.
Atlas Resource Partners, L.P. (NYSE:ARP) shares are well in the green due to the rise in crude prices. Because tensions between Saudi Arabia and Iran have become more heated after Saudi Arabia executed Shiite cleric Nimr al-Nimr, Brent near month futures were up 3% and WTI futures were up 2% earlier this morning. If crude and gas prices go higher, Atlas Resource Partners, L.P. (NYSE:ARP)’s fundamentals will improve. Also helping demand is some technical buying after Atlas shares closed above a key moving average to end 2015. Leon Cooperman’s Omega Advisors was among 5 elite funds that owned shares of the company at the end of September.
On the next page, we examine Southwestern Energy Company, General Steel Holdings, and FuelCell Energy.