Hedge Funds Are Betting On Plains GP Holdings LP (PAGP)

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With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Carlson Capital, managed by Clint Carlson, initiated the biggest position in Plains GP Holdings LP (NYSE:PAGP). According to its latest 13F filing, the fund had $34.2 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $29 million investment in the stock during the quarter. The other funds with brand new PAGP positions are Anand Parekh’s Alyeska Investment Group, David Zusman’s Talara Capital Management, and Bruce J. Richards and Louis Hanover’s Marathon Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Plains GP Holdings LP (NYSE:PAGP) but similarly valued. We will take a look at Sociedad Quimica y Minera (ADR) (NYSE:SQM), 58.com Inc (ADR) (NYSE:WUBA), Zillow Inc (NASDAQ:Z), and Pilgrim’s Pride Corporation (NASDAQ:PPC). This group of stocks’ market values are closest to PAGP’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SQM 16 78163 -1
WUBA 23 1038149 -6
Z 26 614342 0
PPC 21 235777 1

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $492 million. That figure was $422 million in PAGP’s case. Zillow Inc (NASDAQ:Z) is the most popular stock in this table. On the other hand Sociedad Quimica y Minera (ADR) (NYSE:SQM) is the least popular one with only 16 bullish hedge fund positions. Plains GP Holdings LP (NYSE:PAGP) 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 Z might be a better candidate to consider a long position.

Disclosure: none.

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