Hedge Funds Head For Energy Transfer Equity LP (ETE)’s Exits: Spooked by Dakota Pipeline?

Due to the fact that Energy Transfer Equity, L.P. (NYSE:ETE) has sustained falling interest from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedge funds that elected to cut their entire stakes by the end of the third quarter. At the top of the heap, Marc Lisker, Glenn Fuhrman and John Phelan’s MSDC Management cut the largest position of all the investors monitored by Insider Monkey, worth close to $18.8 million in stock, and Gordy Holterman and Derek Dunn’s Overland Advisors was right behind this move, as the fund said goodbye to about $12.9 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Energy Transfer Equity, L.P. (NYSE:ETE) but similarly valued. We will take a look at Incyte Corporation (NASDAQ:INCY), Rockwell Automation (NYSE:ROK), Essex Property Trust Inc (NYSE:ESS), and Ameriprise Financial, Inc. (NYSE:AMP). This group of stocks’ market caps match ETE’s market cap.

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $1.08 billion. That figure was $690 million in ETE’s case. Incyte Corporation (NASDAQ:INCY) is the most popular stock in this table. On the other hand Essex Property Trust Inc (NYSE:ESS) is the least popular one with only 19 bullish hedge fund positions. Energy Transfer Equity, L.P. (NYSE:ETE) 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 INCY might be a better candidate to consider taking a long position in.

Disclosure: None