Nextera Energy Partners LP (NEP): Are Hedge Funds Right About This Stock?

Consequently, some big names have been driving this bullishness. OZ Management, managed by Daniel S. Och, initiated the most outsized position in Nextera Energy Partners LP (NYSE:NEP). OZ Management had $6.3 million invested in the company at the end of the quarter. Steven Tananbaum’s GoldenTree Asset Management also made a $1.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Paul Tudor Jones’s Tudor Investment Corp, and Chao Ku’s Nine Chapters Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Nextera Energy Partners LP (NYSE:NEP) but similarly valued. We will take a look at Bridge Bancorp, Inc. (NASDAQ:BDGE), Triple-S Management Corp.(NYSE:GTS), Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), and Incontact Inc (NASDAQ:SAAS). This group of stocks’ market valuations are similar to NEP’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $61 million, compared to $103 million in NEP’s case. Triple-S Management Corp. (NYSE:GTS) is the most popular stock in this table. On the other hand Bridge Bancorp, Inc. (NASDAQ:BDGE) is the least popular one with only 8 bullish hedge fund positions. Nextera Energy Partners LP (NYSE:NEP) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard GTS might be a better candidate to consider a long position.