Is Genesis Energy, L.P. (GEL) a Good Stock to Buy?

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Seeing as Genesis Energy, L.P. (NYSE:GEL) has gone through a decline in interest from hedge fund managers, it’s easy to see that there were a few funds who sold off their entire stakes in the third quarter. It’s worth mentioning that Daniel S. Och’s OZ Management dumped the largest stake of the “upper crust” of funds tracked by Insider Monkey, comprising an estimated $1.5 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund cut about $1 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Genesis Energy, L.P. (NYSE:GEL). We will take a look at Match Group Inc(NASDAQ:MTCH), Cullen/Frost Bankers, Inc. (NYSE:CFR), Orbital ATK Inc (NYSE:OA), and Graphic Packaging Holding Company (NYSE:GPK). This group of stocks’ market valuations are similar to GEL’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MTCH 19 90149 3
CFR 13 65558 -1
OA 33 507862 1
GPK 32 936168 -4

As you can see these stocks had an average of 24 funds with bullish positions and the average amount invested in these stocks was $400 million. That figure was just $22 million in GEL’s case. Orbital ATK Inc (NYSE:OA) is the most popular stock in this table. On the other hand Cullen/Frost Bankers, Inc. (NYSE:CFR) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Genesis Energy, L.P. (NYSE:GEL) is even less popular than CFR. 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.

Disclosure: None

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