Capital Product Partners L.P. (NASDAQ:CPLP) has experienced an increase in support from the world’s most elite money managers in recent months.
In today’s marketplace, there are many metrics shareholders can use to analyze Mr. Market. A duo of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can beat the S&P 500 by a significant amount (see just how much).
Equally as integral, optimistic insider trading activity is a second way to break down the world of equities. As the old adage goes: there are lots of incentives for an executive to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several empirical studies have demonstrated the valuable potential of this method if investors understand where to look (learn more here).
Keeping this in mind, let’s take a gander at the recent action surrounding Capital Product Partners L.P. (NASDAQ:CPLP).
Hedge fund activity in Capital Product Partners L.P. (NASDAQ:CPLP)
At Q1’s end, a total of 5 of the hedge funds we track were bullish in this stock, a change of 25% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their holdings considerably.
According to our comprehensive database, John Overdeck and David Siegel’s Two Sigma Advisors had the most valuable position in Capital Product Partners L.P. (NASDAQ:CPLP), worth close to $1.8 million, accounting for less than 0.1%% of its total 13F portfolio. On Two Sigma Advisors’s heels is Renaissance Technologies, managed by Jim Simons, which held a $0.4 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other peers that are bullish include Israel Englander’s Millennium Management, Steven Cohen’s SAC Capital Advisors and Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners.
Consequently, some big names have been driving this bullishness. SAC Capital Advisors, managed by Steven Cohen, created the most valuable position in Capital Product Partners L.P. (NASDAQ:CPLP). SAC Capital Advisors had 0.2 million invested in the company at the end of the quarter.
What have insiders been doing with Capital Product Partners L.P. (NASDAQ:CPLP)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company in focus has experienced transactions within the past half-year. Over the latest half-year time period, Capital Product Partners L.P. (NASDAQ:CPLP) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Capital Product Partners L.P. (NASDAQ:CPLP). These stocks are Diana Shipping Inc. (NYSE:DSX), Navios Maritime Partners L.P. (NYSE:NMM), DryShips Inc. (NASDAQ:DRYS), GasLog Ltd (NYSE:GLOG), and Nordic American Tanker Ltd (NYSE:NAT). This group of stocks are the members of the shipping industry and their market caps are similar to CPLP’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Diana Shipping Inc. (NYSE:DSX) | 11 | 0 | 0 |
| Navios Maritime Partners L.P. (NYSE:NMM) | 4 | 0 | 0 |
| DryShips Inc. (NASDAQ:DRYS) | 9 | 0 | 0 |
| GasLog Ltd (NYSE:GLOG) | 5 | 0 | 0 |
| Nordic American Tanker Ltd (NYSE:NAT) | 3 | 0 | 0 |
With the returns demonstrated by our studies, everyday investors must always keep an eye on hedge fund and insider trading sentiment, and Capital Product Partners L.P. (NASDAQ:CPLP) applies perfectly to this mantra.
