What’s a smart Energy Transfer Equity, L.P. (NYSE:ETE) investor to do?
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Equally as key, bullish insider trading activity is another way to look at the stock market universe. Obviously, there are many motivations for a bullish insider to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the market-beating potential of this tactic if piggybackers know where to look (learn more here).
What’s more, it’s important to examine the recent info surrounding Energy Transfer Equity, L.P. (NYSE:ETE).
Hedge fund activity in Energy Transfer Equity, L.P. (NYSE:ETE)
At the end of the second quarter, a total of 15 of the hedge funds we track were long in this stock, a change of 25% from one quarter earlier. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes significantly.
Now, specific money managers have jumped into Energy Transfer Equity, L.P. (NYSE:ETE) headfirst. Mason Capital Management, managed by Kenneth Mario Garschina, assembled the most outsized position in Energy Transfer Equity, L.P. (NYSE:ETE). Mason Capital Management had 487.4 million invested in the company at the end of the quarter. Daniel S. Och’s OZ Management also made a $286.6 million investment in the stock during the quarter. The following funds were also among the new ETE investors: Dmitry Balyasny’s Balyasny Asset Management, Israel Englander’s Millennium Management, and Jim Simons’s Renaissance Technologies.
How are insiders trading Energy Transfer Equity, L.P. (NYSE:ETE)?
Insider buying is at its handiest when the company in question has experienced transactions within the past half-year. Over the latest 180-day time frame, Energy Transfer Equity, L.P. (NYSE:ETE) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Energy Transfer Equity, L.P. (NYSE:ETE). These stocks are Magellan Midstream Partners, L.P. (NYSE:MMP), Oneok Partners LP (NYSE:OKS), Spectra Energy Corp. (NYSE:SE), Plains All American Pipeline, L.P. (NYSE:PAA), and Energy Transfer Partners LP (NYSE:ETP). This group of stocks are in the oil & gas pipelines industry and their market caps are closest to ETE’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Magellan Midstream Partners, L.P. (NYSE:MMP) | 8 | 0 | 0 |
| Oneok Partners LP (NYSE:OKS) | 7 | 0 | 0 |
| Spectra Energy Corp. (NYSE:SE) | 22 | 0 | 0 |
| Plains All American Pipeline, L.P. (NYSE:PAA) | 10 | 0 | 0 |
| Energy Transfer Partners LP (NYSE:ETP) | 9 | 0 | 0 |
Using the returns explained by Insider Monkey’s tactics, average investors should always pay attention to hedge fund and insider trading activity, and Energy Transfer Equity, L.P. (NYSE:ETE) applies perfectly to this mantra.
