Hedge Funds Are Betting On Western Gas Equity Partners LP (WGP)

Now, specific money managers have jumped into Western Gas Equity Partners LP (NYSE:WGP) headfirst. Renaissance Technologies assembled the most outsized position in Western Gas Equity Partners LP (NYSE:WGP). Renaissance Technologies had $9.2 million invested in the company at the end of the quarter. George Hall’s Clinton Group also made a $2.3 million investment in the stock during the quarter. The other funds with brand new WGP positions are Daniel S. Och’s OZ Management and Ken Griffin’s Citadel Investment Group.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Western Gas Equity Partners LP (NYSE:WGP) but similarly valued. We will take a look at Ball Corporation (NYSE:BLL), Markwest Energy Partners LP (NYSE:MWE), Quintiles Transnational Holdings Inc (NYSE:Q), and ArcelorMittal SA (ADR) (NYSE:MT). All of these stocks’ market caps match Western Gas Equity Partners LP (NYSE:WGP)’s market cap.

As you can see, these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $582 million. That figure was $46 million in Western Gas Equity Partners LP (NYSE:WGP)’s case. Ball Corporation (NYSE:BLL) is the most popular stock in this table. On the other hand, Markwest Energy Partners LP (NYSE:MWE) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks, Western Gas Equity Partners LP (NYSE:WGP) is even less popular than Markwest Energy Partners LP (NYSE:MWE). 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.