Hedge Funds Are Betting On Tallgrass Energy GP LP (TEGP)

Consequently, key money managers have jumped into Tallgrass Energy GP LP (NYSE:TEGP) headfirst. Renaissance Technologies also made a $0.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Douglas Dunn and Vincent Soler’s Limestone Value Partners, David Costen Haley’s HBK Investments, and Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Tallgrass Energy GP LP (NYSE:TEGP) but similarly valued. These stocks are Healthcare Trust Of America Inc (NYSE:HTA), bluebird bio Inc (NASDAQ:BLUE), Pool Corporation (NASDAQ:POOL), and Veeva Systems Inc (NYSE:VEEV). This group of stocks’ market valuations are closest to TEGP’s market valuation.

As you can see, these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $177 million. That figure was $56 million in Tallgrass Energy GP LP (NYSE:TEGP)’s case. bluebird bio Inc (NASDAQ:BLUE) is the most popular stock in this table. On the other hand, Healthcare Trust Of America Inc (NYSE:HTA) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks, Tallgrass Energy GP LP (NYSE:TEGP) is even less popular than Healthcare Trust Of America Inc (NYSE:HTA). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.