Brookfield Infrastructure Partners L.P. (NYSE:BIP) shareholders have witnessed a decrease in activity from the world’s largest hedge funds recently.
In the eyes of most traders, hedge funds are viewed as slow, outdated investment tools of yesteryear. While there are over 8000 funds trading today, we at Insider Monkey hone in on the upper echelon of this group, about 450 funds. It is widely believed that this group has its hands on most of the smart money’s total asset base, and by monitoring their best picks, we have come up with a few investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outclassed the S&P 500 index by 23.3 percentage points in 8 months (see the details here).
Equally as important, bullish insider trading activity is another way to break down the marketplace. Obviously, there are plenty of reasons for an upper level exec to get rid of shares of his or her company, but just one, very obvious reason why they would buy. Various empirical studies have demonstrated the market-beating potential of this tactic if you understand where to look (learn more here).
Now, let’s take a glance at the key action surrounding Brookfield Infrastructure Partners L.P. (NYSE:BIP).
What does the smart money think about Brookfield Infrastructure Partners L.P. (NYSE:BIP)?
At Q1’s end, a total of 4 of the hedge funds we track were bullish in this stock, a change of -43% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings substantially.
According to our comprehensive database, Renaissance Technologies, managed by Jim Simons, holds the biggest position in Brookfield Infrastructure Partners L.P. (NYSE:BIP). Renaissance Technologies has a $14.3 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Christopher C. Grisanti of Grisanti Brown & Partners, with a $1.8 million position; the fund has 0.8% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Bruce Silver’s Silver Capital Management LLC, and Ken Griffin’s Citadel Investment Group.
Seeing as Brookfield Infrastructure Partners L.P. (NYSE:BIP) has experienced falling interest from the smart money, it’s safe to say that there was a specific group of money managers that elected to cut their positions entirely last quarter. It’s worth mentioning that Russell Lucas’s Lucas Capital Management cut the largest position of the 450+ funds we watch, worth an estimated $1.3 million in stock.. Murray Stahl’s fund, Horizon Asset Management, also sold off its stock, about $0.6 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 3 funds last quarter.
What have insiders been doing with Brookfield Infrastructure Partners L.P. (NYSE:BIP)?
Insider purchases made by high-level executives is particularly usable when the company in focus has seen transactions within the past 180 days. Over the last half-year time period, Brookfield Infrastructure Partners L.P. (NYSE:BIP) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Brookfield Infrastructure Partners L.P. (NYSE:BIP). These stocks are Pinnacle West Capital Corporation (NYSE:PNW), Centrais Eletricas Brasileiras SA (ADR) (NYSE:EBR), ITC Holdings Corp. (NYSE:ITC), Pepco Holdings, Inc. (NYSE:POM), and Alliant Energy Corporation (NYSE:LNT). This group of stocks are in the electric utilities industry and their market caps match BIP’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Pinnacle West Capital Corporation (NYSE:PNW) | 15 | 0 | 5 |
| Centrais Eletricas Brasileiras SA (ADR) (NYSE:EBR) | 10 | 0 | 0 |
| ITC Holdings Corp. (NYSE:ITC) | 14 | 0 | 4 |
| Pepco Holdings, Inc. (NYSE:POM)%3 |
