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Calumet: What Are Institutional Investors Thinking?

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Institutions hold nearly 21% of Calumet’s float

Nearly 20.9% of Calumet Specialty Products Partners’ (CLMT) floating shares are currently held by ~139 institutional investors. The percentage of float held decreased from nearly 24.2% at the end of 1Q16. The number of new institutional buyers of Calumet shares fell from 28 at the end of 1Q16 to 22 on June 22, 2016. At the same time, the number of sellers increased from 36 to 43 since the end of 1Q16. The number of sell-offs increased from 24 at the end of 1Q16 to 28 on June 22, 2016. These changes indicate institutional investors’ negative sentiments towards Calumet.

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The above table summarizes institutional investors’ activity in Calumet’s shares. Since the beginning of June, the number of sellers increased from 42 to 43 and the number of new buyers decreased from 23 to 22. Institutional activity in June indicates institutional investors’ sustained negative sentiments for Calumet.

In comparison, institutional investors own nearly 8.7% of CVR Refining’s (CVRR) floating shares and 35% of Alon USA Partners’ (ALDW) floating shares.

Top holders

Heritage Group is the biggest institutional holder. It owns 14.4% of Calumet’s outstanding shares. Fred Fehsenfeld Jr., Chairman of Calumet GP, LLC and Jennifer G. Straumins, Calumet’s former executive vice president, hold 3.4% and 1.8%, respectively, of Calumet’s outstanding shares. While Heritage Group’s holdings remained unchanged, both Fehsenfeld and Straumins increased their holdings since the end of 1Q16.

Short interest

Short interest represents the total number of shares of a particular stock that have been shorted but haven’t been closed out yet. Calumet’s short interest as a percentage of its float is 4.8%—compared to the average of 2.7% for all Alerian MLP Index (AMZ) members and 2.8% for the energy sector. The ratio is 11.2% for Sunoco (SUN) and 7.0% for Cheniere Energy Partners (CQP).

A high short interest as a percentage of float—as well as any sudden increase in short interest—indicates that more investors expect the stock’s price to fall.

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