Is EnLink Midstream LLC (ENLC) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, some big names have been driving this bullishness. Renaissance Technologies, led by Jim Simons, established the largest position in EnLink Midstream LLC (NYSE:ENLC). Renaissance Technologies had $2.5 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also initiated a $1.1 million position during the quarter. The only other fund with a new position in the stock is Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as EnLink Midstream LLC (NYSE:ENLC) but similarly valued. These stocks are Univar Inc (NYSE:UNVR), EnerSys (NYSE:ENS), Paycom Software Inc (NYSE:PAYC), and Chimera Investment Corporation (NYSE:CIM). All of these stocks’ market caps resemble ENLC’s market cap.

As you can see these stocks had an average of 18.5 hedge funds with bullish positions and the average amount invested in these stocks was $186 million. That figure was $24 million in ENLC’s case. Univar Inc (NYSE:UNVR) is the most popular stock in this table. On the other hand Chimera Investment Corporation (NYSE:CIM) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks EnLink Midstream LLC (NYSE:ENLC) is even less popular than CIM. 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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