Is Genesis Energy, L.P. (NYSE:GEL) a good stock to buy now? Investors who are in the know are becoming less confident. The number of long hedge fund positions stayed the same which is a slightly negative development in our experience
In today’s marketplace, there are a multitude of metrics shareholders can use to watch publicly traded companies. A pair of the most innovative are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top fund managers can outpace the S&P 500 by a superb amount (see just how much).
Equally as key, positive insider trading activity is another way to break down the stock market universe. As the old adage goes: there are plenty of incentives for an executive to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this tactic if piggybackers understand what to do (learn more here).
With all of this in mind, we’re going to take a gander at the latest action surrounding Genesis Energy, L.P. (NYSE:GEL).
What have hedge funds been doing with Genesis Energy, L.P. (NYSE:GEL)?
At year’s end, a total of 5 of the hedge funds we track were bullish in this stock, a change of 0% from the previous quarter. With hedge funds’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were upping their holdings considerably.
According to our comprehensive database, Dmitry Balyasny’s Balyasny Asset Management had the biggest position in Genesis Energy, L.P. (NYSE:GEL), worth close to $17 million, comprising 0.4% of its total 13F portfolio. The second largest stake is held by Richard Driehaus of Driehaus Capital, with a $10 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Jim Simons’s Renaissance Technologies, Russell Lucas’s Lucas Capital Management and Cliff Asness’s AQR Capital Management.
Because Genesis Energy, L.P. (NYSE:GEL) has experienced falling interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of money managers that decided to sell off their full holdings in Q4. It’s worth mentioning that Mario Gabelli’s GAMCO Investors cut the biggest stake of all the hedgies we monitor, totaling about $1 million in stock. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Genesis Energy, L.P. (NYSE:GEL)?
Insider buying is at its handiest when the company in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Genesis Energy, L.P. (NYSE:GEL) has experienced 4 unique insiders buying, and 3 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Genesis Energy, L.P. (NYSE:GEL). These stocks are Targa Resources Partners LP (NYSE:NGLS), DCP Midstream Partners, LP (NYSE:DPM), Regency Energy Partners LP (NYSE:RGP), Spectra Energy Partners, LP (NYSE:SEP), and NuStar Energy L.P. (NYSE:NS). This group of stocks are the members of the oil & gas pipelines industry and their market caps are closest to GEL’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Targa Resources Partners LP (NYSE:NGLS)||7||2||0|
|DCP Midstream Partners, LP (NYSE:DPM)||3||3||0|
|Regency Energy Partners LP (NYSE:RGP)||4||0||0|
|Spectra Energy Partners, LP (NYSE:SEP)||3||3||0|
|NuStar Energy L.P. (NYSE:NS)||4||7||0|
With the returns shown by Insider Monkey’s strategies, retail investors should always monitor hedge fund and insider trading activity, and Genesis Energy, L.P. (NYSE:GEL) is no exception.
Insider Monkey’s small-cap strategy returned 37% between September 2012 and March 2013 versus 12.9% for the S&P 500 index. Try it now by clicking the link above.