Hedge Funds Are Crazy About Atlas Pipeline Partners, L.P. (APL)

Page 1 of 2

Atlas Pipeline Partners, L.P. (NYSE:APL) was in 13 hedge funds’ portfolio at the end of the first quarter of 2013. APL investors should pay attention to an increase in activity from the world’s largest hedge funds recently. There were 9 hedge funds in our database with APL positions at the end of the previous quarter.

To the average investor, there are many metrics investors can use to track publicly traded companies. Two of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can trounce their index-focused peers by a solid amount (see just how much).

Equally as key, bullish insider trading activity is a second way to parse down the world of equities. Obviously, there are plenty of incentives for a corporate insider to cut shares of his or her company, but just one, very obvious reason why they would initiate a purchase. Various empirical studies have demonstrated the market-beating potential of this strategy if piggybackers understand what to do (learn more here).

Keeping this in mind, we’re going to take a look at the latest action surrounding Atlas Pipeline Partners, L.P. (NYSE:APL).

How have hedgies been trading Atlas Pipeline Partners, L.P. (NYSE:APL)?

At the end of the first quarter, a total of 13 of the hedge funds we track were long in this stock, a change of 44% from the first quarter. With the smart money’s capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were boosting their stakes significantly.

Atlas Pipeline Partners, L.P. (NYSE:APL)When looking at the hedgies we track, Leon Cooperman’s Omega Advisors had the biggest position in Atlas Pipeline Partners, L.P. (NYSE:APL), worth close to $175.3 million, comprising 2.7% of its total 13F portfolio. On Omega Advisors’s heels is Balyasny Asset Management, managed by Dmitry Balyasny, which held a $19.2 million position; 0.3% of its 13F portfolio is allocated to the company. Other hedgies that hold long positions include Jim Simons’s Renaissance Technologies, Anand Parekh’s Alyeska Investment Group and Robert Raiff’s Raiff Partners.

Consequently, key hedge funds have been driving this bullishness. Renaissance Technologies, managed by Jim Simons, established the most valuable position in Atlas Pipeline Partners, L.P. (NYSE:APL). Renaissance Technologies had 18.6 million invested in the company at the end of the quarter. Robert Raiff’s Raiff Partners also made a $3.5 million investment in the stock during the quarter. The following funds were also among the new APL investors: Anand Parekh’s Alyeska Investment Group, Remy Trafelet’s Trafelet Capital, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

What do corporate executives and insiders think about Atlas Pipeline Partners, L.P. (NYSE:APL)?

Insider buying is best served when the company we’re looking at has seen transactions within the past half-year. Over the last six-month time frame, Atlas Pipeline Partners, L.P. (NYSE:APL) has seen 1 unique insiders purchasing, and 2 insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Atlas Pipeline Partners, L.P. (NYSE:APL). These stocks are Tesoro Logistics LP (NYSE:TLLP), Oiltanking Partners LP (NYSE:OILT), Inergy Midstream LP (NYSE:NRGM), Holly Energy Partners, L.P. (NYSE:HEP), and SemGroup Corp (NYSE:SEMG). This group of stocks belong to the oil & gas pipelines industry and their market caps resemble APL’s market cap.

Page 1 of 2