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Is Brookfield Infrastructure Partners L.P. (BIP) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Brave Warrior Capital, managed by Glenn Greenberg, established the largest position in Brookfield Infrastructure Partners L.P. (NYSE:BIP). Brave Warrior Capital had $4.5 million invested in the company at the end of the quarter. George Hall’s Clinton Group also made a $2 million investment in the stock during the quarter. The other funds with brand new BIP positions are John Overdeck and David Siegel’s Two Sigma Advisors and Israel Englander’s Millennium Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Brookfield Infrastructure Partners L.P. (NYSE:BIP) but similarly valued. These stocks are Axalta Coating Systems Ltd (NYSE:AXTA), YPF SA (ADR) (NYSE:YPF), STMicroelectronics N.V. (ADR) (NYSE:STM), and United Therapeutics Corporation (NASDAQ:UTHR). This group of stocks’ market valuations are similar to BIP’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AXTA 44 1786793 6
YPF 32 634457 -2
STM 6 6900 1
UTHR 34 1584972 -7

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1,003 million. That figure was $26 million in BIP’s case. Axalta Coating Systems Ltd (NYSE:AXTA) is the most popular stock in this table. On the other hand STMicroelectronics N.V. (ADR) (NYSE:STM) is the least popular one with only 6 bullish hedge fund positions. Brookfield Infrastructure Partners L.P. (NYSE:BIP) 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 AXTA might be a better candidate to consider a long position.

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