Is Phillips 66 Partners LP (PSXP) Going to Burn These Hedge Funds?

As industrywide interest jumped, some big names were leading the bulls’ herd. George Hall’s Clinton Group initiated a $1.6 million position during the quarter. The other funds with new positions in the stock are Driehaus Capital, Renaissance Technologies, one of the largest hedge funds in the world, and Israel Englander’s Millennium Management.

Let’s now review hedge fund activity in other stocks similar to Phillips 66 Partners LP (NYSE:PSXP). We will take a look at Casey’s General Stores, Inc. (NASDAQ:CASY), Antero Midstream Partners LP (NYSE:AM), Valvoline Inc (NYSE:VVV), and Booz Allen Hamilton Holding Corporation (NYSE:BAH). This group of stocks’ market values are closest to PSXP’s market value.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $265 million. That figure was $42 million in PSXP’s case. Valvoline Inc (NYSE:VVV) is the most popular stock in this table. On the other hand Antero Midstream Partners LP (NYSE:AM) is the least popular one with only 5 bullish hedge fund positions. Phillips 66 Partners LP (NYSE:PSXP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VVV might be a better candidate to consider taking a long position in.

Disclosure: None