Here is What Hedge Funds Think About Shell Midstream Partners LP (SHLX)

As one would reasonably expect, some big names were leading the bulls’ herd. Zimmer Partners, managed by Stuart J. Zimmer, assembled the most outsized position in Shell Midstream Partners LP (NYSE:SHLX). Zimmer Partners had $21.2 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $1.1 million investment in the stock during the quarter. The other funds with new positions in the stock are Sander Gerber’s Hudson Bay Capital Management, and Richard Driehaus’s Driehaus Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Shell Midstream Partners LP (NYSE:SHLX) but similarly valued. These stocks are FNFV Group (NYSE:FNFV), Murphy Oil Corporation (NYSE:MUR), Watsco Inc (NYSE:WSO), and Och-Ziff Capital Management Group LLC (NYSE:OZM). This group of stocks’ market values resemble SHLX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FNFV 27 237937 1
MUR 27 444035 3
WSO 16 191180 1
OZM 12 34456 1

As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $227 million. That figure was $39 million in SHLX’s case. FNFV Group (NYSE:FNFV) is the most popular stock in this table. On the other hand Och-Ziff Capital Management Group LLC (NYSE:OZM) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Shell Midstream Partners LP (NYSE:SHLX) is even less popular than OZM. 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.