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Enbridge Inc (USA) (ENB): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, some big names have jumped into Enbridge Inc (USA) (NYSE:ENB) headfirst. Renaissance Technologies, managed by Jim Simons, initiated the largest position in Enbridge Inc (USA) (NYSE:ENB). Renaissance Technologies had $27.7 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $25.8 million investment in the stock during the quarter. The following funds were also among the new ENB investors: Stephen J. Errico’s Locust Wood Capital Advisers, John Overdeck and David Siegel’s Two Sigma Advisors, and Richard Driehaus’s Driehaus Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Enbridge Inc (USA) (NYSE:ENB) but similarly valued. We will take a look at Netflix, Inc. (NASDAQ:NFLX), Sumitomo Mitsui Financial Grp, Inc. (ADR) (NYSE:SMFG), Halliburton Company (NYSE:HAL), and PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ). This group of stocks’ market values are closest to ENB’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NFLX 55 3711921 1
SMFG 10 26743 0
HAL 56 1801346 -6
QQQ 24 1423248 4

As you can see these stocks had an average of 36.25 hedge funds with bullish positions and the average amount invested in these stocks was $1741 million. That figure was $286 million in ENB’s case. Halliburton Company (NYSE:HAL) is the most popular stock in this table. On the other hand Sumitomo Mitsui Financial Grp, Inc. (ADR) (NYSE:SMFG) is the least popular one with only 10 bullish hedge fund positions. Enbridge Inc (USA) (NYSE:ENB) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HAL might be a better candidate to consider a long position.

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