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Should You Avoid Brookfield Infrastructure Partners L.P. (BIP)?

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Is Brookfield Infrastructure Partners L.P. (NYSE:BIP) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.

Is Brookfield Infrastructure Partners L.P. (NYSE:BIP) a buy right now? Prominent investors are categorically in a pessimistic mood. The number of long hedge fund investments slashed by 1 recently. There were 6 hedge funds in our database with BIP holdings at the end of the 2016 third quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as The Valspar Corporation (NYSE:VAL), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), and Brixmor Property Group Inc (NYSE:BRX) to gather more data points.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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zhangyang13576997233/Shutterstock.com

Now, let’s review the recent action encompassing Brookfield Infrastructure Partners L.P. (NYSE:BIP).

Hedge fund activity in Brookfield Infrastructure Partners L.P. (NYSE:BIP)

At the end of the third quarter, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 14% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in BIP over the last 5 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

HedgeFundSentimentChart

Of the funds tracked by Insider Monkey, Eric Sprott’s Sprott Asset Management holds the largest position in Brookfield Infrastructure Partners L.P. (NYSE:BIP). According to regulatory filings, the fund has a $19.4 million position in the stock. Sprott Asset Management also holds a major options position, valued at $12.1 million. The second largest equity stake is held by Murray Stahl’s Horizon Asset Management, which manages a $4.05 million position. Some other peers that hold long positions include Ken Griffin’s Citadel Investment Group, Russell Lucas’ Lucas Capital Management and Matthew Hulsizer’s PEAK6 Capital Management. We should note that two of these hedge funds (Sprott Asset Management and Sprott Asset Management) are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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