Should You Buy Shares Of Western Gas Equity Partners LP (WGP)?

Now, specific money managers have been driving this bullishness. Millennium Management, led by Israel Englander, assembled the biggest position in Western Gas Equity Partners LP (NYSE:WGP). Millennium Management had $4.5 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also made a $4.2 million investment in the stock during the quarter. The following funds were also among the new WGP investors: Matthew Hulsizer’s PEAK6 Capital Management and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Western Gas Equity Partners LP (NYSE:WGP) but similarly valued. These stocks are IMS Health Holdings Inc (NYSE:IMS), Atmos Energy Corporation (NYSE:ATO), IDEXX Laboratories, Inc. (NASDAQ:IDXX), and The Cooper Companies, Inc. (NYSE:COO). This group of stocks’ market valuations resemble WGP’s market valuation.

As you can see these stocks had an average of 20 funds with long positions and the average amount invested in these stocks was $622 million. That figure was just $81 million in WGP’s case. The Cooper Companies, Inc. (NYSE:COO) is the most popular stock in this table. On the other hand Atmos Energy Corporation (NYSE:ATO) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Western Gas Equity Partners LP (NYSE:WGP) is even less popular than Atmos Energy Corporation (NYSE:ATO). 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.

Suggested Articles:
Top Places To See In Europe Before You Die
Most Religiously Tolerant Countries
Easiest Part-Time Jobs For College Students

Disclosure: None