Is NuStar Energy L.P. (NS) a Good Stock to Buy?

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As aggregate interest increased, some big names were leading the bulls’ herd. Millennium Management, led by Israel Englander, assembled the biggest position in NuStar Energy L.P. (NYSE:NS). Millennium Management had $2.8 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $1.2 million position during the quarter. The following funds were also among the new NS investors: Paul Marshall and Ian Wace’s Marshall Wace LLP and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to NuStar Energy L.P. (NYSE:NS). We will take a look at Colfax Corp (NYSE:CFX), Ternium S.A. (ADR) (NYSE:TX), Cepheid (NASDAQ:CPHD), and DST Systems, Inc. (NYSE:DST). All of these stocks’ market caps are closest to NS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CFX 28 931325 10
TX 14 89430 0
CPHD 33 512141 16
DST 24 366216 6

As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $475 million. That figure was $13 million in NS’s case. Cepheid (NASDAQ:CPHD) is the most popular stock in this table. On the other hand Ternium S.A. (ADR) (NYSE:TX) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks NuStar Energy L.P. (NYSE:NS) is even less popular than TX. 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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