Is Enbridge Energy Partners, L.P. (EEP) A Good Stock To Buy?

As industrywide interest jumped, key money managers were leading the bulls’ herd. Magnetar Capital created the most outsized position in Enbridge Energy Partners, L.P. (NYSE:EEP). George Hall’s Clinton Group also made a $1.2 million investment in the stock during the quarter. The other funds with brand new EEP positions are Ken Griffin’s Citadel Investment Group and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s also examine hedge fund activity in other stocks similar to Enbridge Energy Partners, L.P. (NYSE:EEP). These stocks are Advance Auto Parts, Inc. (NYSE:AAP), Rockwell Collins, Inc. (NYSE:COL), Lincoln National Corporation (NYSE:LNC), and LKQ Corporation (NASDAQ:LKQ). This group of stocks’ market valuations are similar to EEP’s market valuation.

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $1.08 billion. That figure was $120 million in EEP’s case. Advance Auto Parts, Inc. (NYSE:AAP) is the most popular stock in this table. On the other hand Rockwell Collins, Inc. (NYSE:COL) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Enbridge Energy Partners, L.P. (NYSE:EEP) is even less popular than COL. 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.

Suggested Articles:
Biggest Fitness Chains In America
Countries With The Highest Mormon Population
Biggest Gangs In America