Hedge Funds Are Betting On Boardwalk Pipeline Partners, LP (BWP)

With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. MFP Investors, managed by Michael Price, initiated the most outsized position in Boardwalk Pipeline Partners, LP (NYSE:BWP). According to its latest 13F filing, the fund had $1.2 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also initiated a $0.8 million position during the quarter. The only other fund with a new position in the stock is Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Boardwalk Pipeline Partners, LP (NYSE:BWP) but similarly valued. We will take a look at Cedar Fair, L.P. (NYSE:FUN), Cobalt International Energy, Inc. (NYSE:CIE), Curtiss-Wright Corp. (NYSE:CW), and Firstmerit Corp (NASDAQ:FMER). This group of stocks’ market values are closest to BWP’s market value.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $341 million. That figure was a disappointing $170 million in BWP’s case. Cobalt International Energy, Inc. (NYSE:CIE) is the most popular stock in this table, while Cedar Fair, L.P. (NYSE:FUN) is at the other end of the specter with only 10 bullish hedge fund positions. Boardwalk Pipeline Partners, LP (NYSE:BWP) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CIE might be a better candidate to consider a long position.