Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Nextera Energy Partners LP (NYSE:NEP), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Nextera Energy Partners LP (NYSE:NEP) was in 12 hedge funds’ portfolios at the end of September. NEP has experienced an increase in hedge fund interest lately. There were 7 hedge funds in our database with NEP positions at the end of the previous quarter. Our calculations also showed that nep isn’t among the 30 most popular stocks among hedge funds.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 6.3% year to date (through December 3rd) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 18 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Let’s go over the latest hedge fund action surrounding Nextera Energy Partners LP (NYSE:NEP).
What have hedge funds been doing with Nextera Energy Partners LP (NYSE:NEP)?
At the end of the third quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, a change of 71% from the second quarter of 2018. On the other hand, there were a total of 12 hedge funds with a bullish position in NEP at the beginning of this year. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Blackstart Capital, managed by Brian Olson, Baehyun Sung, and Jamie Waters, holds the largest position in Nextera Energy Partners LP (NYSE:NEP). Blackstart Capital has a $10.6 million position in the stock, comprising 2.4% of its 13F portfolio. The second most bullish fund manager is Bernard Lambilliotte of Ecofin Ltd, with a $9.5 million position; the fund has 6.3% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish encompass Paul Marshall and Ian Wace’s Marshall Wace LLP, Charles Davidson and Joseph Jacobs’s Wexford Capital and Israel Englander’s Millennium Management.
As one would reasonably expect, some big names were leading the bulls’ herd. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, assembled the most valuable position in Nextera Energy Partners LP (NYSE:NEP). Marshall Wace LLP had $8.1 million invested in the company at the end of the quarter. Sara Nainzadeh’s Centenus Global Management also made a $0.7 million investment in the stock during the quarter. The other funds with brand new NEP positions are David Costen Haley’s HBK Investments and Ken Griffin’s Citadel Investment Group.
Let’s now take a look at hedge fund activity in other stocks similar to Nextera Energy Partners LP (NYSE:NEP). These stocks are Supernus Pharmaceuticals Inc (NASDAQ:SUPN), AMC Entertainment Holdings Inc (NYSE:AMC), Crestwood Equity Partners LP (NYSE:CEQP), and HB Fuller Co (NYSE:FUL). All of these stocks’ market caps match NEP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SUPN | 14 | 59831 | -3 |
| AMC | 21 | 159127 | 7 |
| CEQP | 4 | 35008 | -2 |
| FUL | 8 | 137229 | -5 |
| Average | 11.75 | 97799 | -0.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11.75 hedge funds with bullish positions and the average amount invested in these stocks was $98 million. That figure was $57 million in NEP’s case. AMC Entertainment Holdings Inc (NYSE:AMC) is the most popular stock in this table. On the other hand Crestwood Equity Partners LP (NYSE:CEQP) is the least popular one with only 4 bullish hedge fund positions. Nextera Energy Partners LP (NYSE:NEP) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AMC might be a better candidate to consider a long position.
Disclosure: None. This article was originally published at Insider Monkey.
