Buckeye Partners, L.P. (NYSE:BPL) has seen a decrease in activity from the world’s largest hedge funds in recent months; in our experience, stagnant interest is a slightly negative development.
To the average investor, there are plenty of gauges shareholders can use to monitor stocks. A pair of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best money managers can outclass the market by a healthy margin (see just how much).
Just as beneficial, bullish insider trading sentiment is a second way to parse down the stock market universe. Obviously, there are plenty of reasons for a bullish insider to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).
Consequently, we’re going to take a peek at the recent action regarding Buckeye Partners, L.P. (NYSE:BPL).
How are hedge funds trading Buckeye Partners, L.P. (NYSE:BPL)?
At the end of the fourth quarter, a total of 6 of the hedge funds we track held long positions in this stock, a change of 0% from the third quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings meaningfully.
Of the funds we track, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the most valuable position in Buckeye Partners, L.P. (NYSE:BPL). First Eagle Investment Management has a $13.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On First Eagle Investment Management’s heels is Michael Messner of Seminole Capital (Investment Mgmt), with a $10.8 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Jim Simons’s Renaissance Technologies, Ken Griffin’s Citadel Investment Group and Phil Frohlich’s Prescott Group Capital Management.
What have insiders been doing with Buckeye Partners, L.P. (NYSE:BPL)?
Bullish insider trading is most useful when the primary stock in question has seen transactions within the past six months. Over the latest half-year time frame, Buckeye Partners, L.P. (NYSE:BPL) has seen zero unique insiders buying, and 1 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Buckeye Partners, L.P. (NYSE:BPL). These stocks are Targa Resources Partners LP (NYSE:NGLS), Cheniere Energy Partners LP (NYSEAMEX:CQP), Sunoco Logistics Partners L.P. (NYSE:SXL), Boardwalk Pipeline Partners, LP (NYSE:BWP), and Western Gas Partners, LP (NYSE:WES). All of these stocks are in the oil & gas pipelines industry and their market caps match BPL’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Targa Resources Partners LP (NYSE:NGLS) | 7 | 2 | 0 |
| Cheniere Energy Partners LP (NYSEAMEX:CQP) | 4 | 1 | 1 |
| Sunoco Logistics Partners L.P. (NYSE:SXL) | 5 | 2 | 1 |
| Boardwalk Pipeline Partners, LP (NYSE:BWP) | 6 | 0 | 0 |
| Western Gas Partners, LP (NYSE:WES) | 4 | 2 | 3 |
With the returns exhibited by Insider Monkey’s strategies, everyday investors must always monitor hedge fund and insider trading activity, and Buckeye Partners, L.P. (NYSE:BPL) is an important part of this process.
