Is BreitBurn Energy Partners L.P. (BBEP) A Good Stock To Buy?

Due to the fact that BreitBurn Energy Partners L.P. (NASDAQ:BBEP) has faced bearish sentiment from the smart money, it’s easy to see that there was a specific group of funds that slashed their positions entirely by the end of the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group dropped the largest position of all the hedgies followed by Insider Monkey, worth an estimated $0.3 million in stock, and George Hall’s Clinton Group was right behind this move, as the fund sold off about $0.1 million worth. These moves are important to note, as total hedge fund interest was cut by 1 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as BreitBurn Energy Partners L.P. (NASDAQ:BBEP) but similarly valued. We will take a look at Medley Capital Corp (NYSE:MCC), Centrue Financial Corp (PINK:TRUE), AK Steel Holding Corporation (NYSE:AKS), and Ascendis Pharma A/S (NASDAQ:ASND). This group of stocks’ market values are closest to BBEP’s market value.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $56 million. That figure was just $5 million in BBEP’s case. AK Steel Holding Corporation (NYSE:AKS) is the most popular stock in this table, while Medley Capital Corp (NYSE:MCC) is the least popular one with only 4 bullish hedge fund positions. BreitBurn Energy Partners L.P. (NASDAQ:BBEP) 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 AKS might be a better candidate to consider a long position.