Were Hedge Funds Right About Buying KNOT Offshore Partners LP (KNOP)?

More specifically, Renaissance Technologies was the largest shareholder of KNOT Offshore Partners LP (NYSE:KNOP), with a stake worth $9.7 …

Consequently, key money managers have jumped into KNOT Offshore Partners LP (NYSE:KNOP) headfirst. PEAK6 Capital Management, managed by Matthew Hulsizer, established the biggest position in KNOT Offshore Partners LP (NYSE:KNOP). PEAK6 Capital Management had $0 million invested in the company at the end of the quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as KNOT Offshore Partners LP (NYSE:KNOP) but similarly valued. These stocks are Luther Burbank Corporation (NASDAQ:LBC), WideOpenWest, Inc. (NYSE:WOW), Tristate Capital Holdings Inc (NASDAQ:TSC), and Stemline Therapeutics Inc (NASDAQ:STML). This group of stocks’ market caps are similar to KNOP’s market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LBC,7,9917,1 WOW,8,15124,-3 TSC,10,47224,-3 STML,17,226395,-3 Average,10.5,74665,-2 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $18 million in KNOP’s case. Stemline Therapeutics Inc (NASDAQ:STML) is the most popular stock in this table. On the other hand Luther Burbank Corporation (NASDAQ:LBC) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks KNOT Offshore Partners LP (NYSE:KNOP) is even less popular than LBC. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. A small number of hedge funds were also right about betting on KNOP, though not to the same extent, as the stock returned 2.7% during the third quarter and outperformed the market as well.

Disclosure: None. This article was originally published at Insider Monkey.

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