Hedge Funds Are Selling EQT Midstream Partners LP (EQM)

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Because EQT Midstream Partners LP (NYSE:EQM) has sustained a decline in interest from the entirety of the hedge funds we track, we can see that there was a specific group of fund managers who were dropping their entire stakes in the third quarter. It’s worth mentioning that George Hall’s Clinton Group cashed in the biggest investment of the “upper crust” of funds followed by Insider Monkey, worth about $4.9 million in stock. Richard Driehaus’s fund, Driehaus Capital, also dumped its stock, about $2.1 million worth of EQM shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as EQT Midstream Partners LP (NYSE:EQM) but similarly valued. We will take a look at PerkinElmer, Inc. (NYSE:PKI), Braskem SA (ADR) (NYSE:BAK), Owens Corning (NYSE:OC), and VimpelCom Ltd (ADR) (NYSE:VIP). This group of stocks’ market valuations are similar to EQM’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PKI 25 436280 -1
BAK 8 45996 3
OC 35 1197532 1
VIP 22 253443 12

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $483 million. That figure was a meager $67 million in EQM’s case. Owens Corning (NYSE:OC) is the most popular stock in this table. On the other hand Braskem SA (ADR) (NYSE:BAK) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks EQT Midstream Partners LP (NYSE:EQM) is even less popular than BAK. 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.

Disclosure: none.

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