Is EnLink Midstream Partners LP (ENLK) A Good Stock To Buy?

Because EnLink Midstream Partners LP (NYSE:ENLK) has witnessed bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of funds that elected to cut their entire stakes heading into Q4. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management dropped the largest stake of all the hedgies tracked by Insider Monkey, totaling an estimated $1.8 million in stock, and George Hall’s Clinton Group was right behind this move, as the fund said goodbye to about $0.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to EnLink Midstream Partners LP (NYSE:ENLK). We will take a look at athenahealth, Inc (NASDAQ:ATHN), Turquoise Hill Resources Ltd (NYSE:TRQ), Huntington Ingalls Industries Inc (NYSE:HII), and The Ultimate Software Group, Inc. (NASDAQ:ULTI). This group of stocks’ market caps are similar to ENLK’s market cap.

As you can see these stocks had an average of 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $384 million. That figure was $132 million in ENLK’s case. Huntington Ingalls Industries Inc (NYSE:HII) is the most popular stock in this table. On the other hand The Ultimate Software Group, Inc. (NASDAQ:ULTI) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks EnLink Midstream Partners LP (NYSE:ENLK) is even less popular than ULTI. 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.