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

Seeing as Brookfield Infrastructure Partners L.P. (NYSE:BIP) has faced bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there is a sect of hedge funds who sold off their full holdings last quarter. Interestingly, Renaissance Technologies, which is one of the largest hedge funds in the world, cashed in the biggest stake of all the hedgies watched by Insider Monkey, worth close to $9.2 million in stock. George Hall’s fund, Clinton Group, also dumped its stock, about $1.3 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Brookfield Infrastructure Partners L.P. (NYSE:BIP) but similarly valued. These stocks are The Valspar Corporation (NYSE:VAL), Valeant Pharmaceuticals Intl Inc (NYSE:VRX), Brixmor Property Group Inc (NYSE:BRX), and Lululemon Athletica inc. (NASDAQ:LULU). This group of stocks’ market values match BIP’s market value.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1.05 billion. That figure was a meager $39 million in BIP’s case. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is the most popular stock in this table. On the other hand Brixmor Property Group Inc (NYSE:BRX) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Brookfield Infrastructure Partners L.P. (NYSE:BIP) is even less popular than BRX. 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