Is NGL Energy Partners LP (NGL) Going to Burn Investors?

As aggregate interest increased, key hedge funds have jumped into NGL Energy Partners LP (NYSE:NGL) headfirst. Balyasny Asset Management initiated the largest position in NGL Energy Partners LP (NYSE:NGL). The position held by Jim Simons’ Renaissance Technologies was also initiated during the third quarter. The only other fund with a new position in the stock was Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as NGL Energy Partners LP (NYSE:NGL) but similarly valued. We will take a look at NetGear, Inc. (NASDAQ:NTGR), Marriott Vacations Worldwide Corp (NYSE:VAC), Planet Fitness Inc (NYSE:PLNT), and Monro Muffler Brake Inc (NASDAQ:MNRO). All of these stocks’ market caps match NGL’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $126 million. That figure was $14 million in NGL’s case. Planet Fitness Inc (NYSE:PLNT) is the most popular stock in this table. On the other hand Marriott Vacations Worldwide Corp (NYSE:VAC) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks NGL Energy Partners LP (NYSE:NGL) is even less popular than VAC. 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.

Disclosure: None