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CVR Partners

UAN pitch short Nielsen Fields ‘17

Thesis

CVR Partners is facing headwinds in the nitrogen fertilizer market, which could lead to underperformance compared to its peers. This makes it a suitable candidate for a short position in the paired trade strategy with Rentech Nitrogen Partners.

Did it work?

inconclusive confidence: low

The pitch is a short on CVR Partners relative to peers (paired against Rentech Nitrogen), but no price performance data is available and the time elapsed since the pitch is unknown. Without return data or evidence that the nitrogen fertilizer headwinds materialized and caused CVR Partners to underperform its peers, there is no basis to confirm or invalidate the thesis. The paired-trade structure also means relative performance, not absolute price, would determine success, which cannot be assessed here.