Is Genesis Energy, L.P. (GEL) A Good Stock To Buy?

As we already know from media reports and hedge fund investor letters, many hedge funds lost money in the third quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with healthcare among them. Nevertheless, most investors decided to stick to their bullish theses and their long-term focus allows us to profit from the recent declines. In particular, let’s take a look at what hedge funds think about Genesis Energy, L.P. (NYSE:GEL) in this article.

Hedge fund interest in Genesis Energy’s shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare GEL to other stocks, including Graphic Packaging Holding Company (NYSE:GPK), Navient Corp (NASDAQ:NAVI), and Taubman Centers, Inc. (NYSE:TCO) to get a better sense of its popularity.

In the eyes of most traders, hedge funds are viewed as slow, outdated investment vehicles of yesteryear. While there are over 8000 funds trading at the moment, We look at the crème de la crème of this group, approximately 700 funds. It is estimated that this group of investors orchestrate bulk of the hedge fund industry’s total capital, and by keeping track of their highest performing picks, Insider Monkey has deciphered many investment strategies that have historically exceeded the market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points per annum for a decade in their back tests.

With all of this in mind, let’s view the key action surrounding Genesis Energy, L.P. (NYSE:GEL).

Hedge fund activity in Genesis Energy, L.P. (NYSE:GEL)

At the Q3’s end, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the previous quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Selz Capital, managed by Bernard Selz, holds the number one position in Genesis Energy, L.P. (NYSE:GEL). Selz Capital has a $11.8 million position in the stock, comprising 3.3% of its 13F portfolio. On Selz Capital’s heels is Zimmer Partners, led by Stuart J. Zimmer, holding a $5.7 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Other professional money managers that hold long positions include Israel Englander’s Millennium Management, and George Hall’s Clinton Group.