Is MPLX LP (MPLX) A Good Stock To Buy?

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Balyasny Asset Management initiated the most valuable position in MPLX LP (NYSE:MPLX). Balyasny Asset Management had $16.9 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $13.2 million position during the quarter. The other funds with new positions in the stock are Charles Davidson’s Wexford Capital and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MPLX LP (NYSE:MPLX) but similarly valued. We will take a look at KLA-Tencor Corporation (NASDAQ:KLAC), Waters Corporation (NYSE:WAT), Coach, Inc. (NYSE:COH), and BRF Brasil Foods SA (ADR) (NYSE:BRFS). All of these stocks’ market caps are similar to MPLX’s market cap.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $498 million. That figure was $259 million in MPLX’s case. KLA-Tencor Corporation (NASDAQ:KLAC) is the most popular stock in this table. On the other hand BRF Brasil Foods SA (ADR) (NYSE:BRFS) is the least popular one with only 8 bullish hedge fund positions. MPLX LP (NYSE:MPLX) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard KLAC might be a better candidate to consider taking a long position in.

Disclosure: None