Are Institutional Investors Bearish on Hi-Crush Partners?

Institutional activity in EMES

According to the latest filings, Balyasny Asset Management and Morgan Stanley Investment Management sold net 0.70 million Emerge Energy Services (EMES) shares from their positions. Apart from Insight Equity, EMES’s sponsor, Morgan Stanley Investment Management, Balyasny Asset Management, and Ted Beneski are the three largest investors in EMES. They hold 6.2%, 4.4%, and 3.9%, respectively, of Emerge Energy Services’ outstanding shares.

Are Institutional Investors Bearish on Hi-Crush Partners?

As the above table shows, the top ten institutional investors in EMES together added net 0.02 million shares to their positions. Together, the top ten investors own 49.4% of EMES’s outstanding shares.

Institutions selling HCLP

Morgan Stanley Investment Management, Bank of America Merrill Lynch, and Goldman Sachs are the three largest institutional holders of Hi-Crush Partners (HCLP) stock. They hold 8.3%, 6.4%, and 3.9%, respectively, of HCLP’s outstanding shares.

The ten largest institutional owners of Hi-Crush Partners reduced a net 11.1 million shares from their holdings. Together, the top ten investors own 44.7% of HCLP’s outstanding shares. A net reduction of 8.8 million shares by Hi-Crush Proppants and 2.2 million HCLP shares by Morgan Stanley Investment Management are the largest position changes. Hi-Crush Proppants, which is Hi-Crush Partners’ sponsor, holds 13.1% interest in HCLP. It sold 8.8 million HCLP shares, according to a May 2017 filing.

Excluding the sale by Hi-Crush Proppants, the top nine investors in HCLP reduced their positions by net 2.3 million shares. These position changes could indicate a bearish sentiment of institutional investors for Hi-Crush Partners.

Next, we’ll take a look at the changes in short interest for HCLP and EMES.