Is DCP Midstream Partners, LP (DPM) A Good Stock To Buy According To Hedge Funds?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. At the top of the heap, Jean-Marie Eveillard’s First Eagle Investment Management cut the largest investment of all the investors followed by Insider Monkey, totaling about $110.4 million in stock. John Horseman’s fund, Horseman Capital Management, also cut its stock, about $8.8 million worth.

Let’s also examine hedge fund activity in other stocks similar to DCP Midstream Partners, LP (NYSE:DPM). These stocks are Urban Outfitters, Inc. (NASDAQ:URBN), Curtiss-Wright Corp. (NYSE:CW), Teradata Corporation (NYSE:TDC), and First Solar, Inc. (NASDAQ:FSLR). This group of stocks’ market caps match DPM’s market cap.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $278 million. That figure was $22 million in DPM’s case. Urban Outfitters, Inc. (NASDAQ:URBN) is the most popular stock in this table. On the other hand Curtiss-Wright Corp. (NYSE:CW) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks DCP Midstream Partners, LP (NYSE:DPM) is even less popular than CW. 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.

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