Is Enbridge Inc (USA) (NYSE:ENB) a buy right now? Hedge funds are betting on the stock. The number of bullish hedge fund positions inched up by 1 recently.
In the financial world, there are dozens of gauges investors can use to monitor Mr. Market. A duo of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best fund managers can beat their index-focused peers by a significant margin (see just how much).
Equally as important, bullish insider trading activity is another way to break down the stock market universe. There are many incentives for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would buy. Various academic studies have demonstrated the valuable potential of this tactic if investors understand where to look (learn more here).
Now, it’s important to take a gander at the latest action surrounding Enbridge Inc (USA) (NYSE:ENB).
What does the smart money think about Enbridge Inc (USA) (NYSE:ENB)?
Heading into Q2, a total of 10 of the hedge funds we track were long in this stock, a change of 11% from one quarter earlier. With hedgies’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings significantly.
According to our comprehensive database, Adage Capital Management, managed by Phill Gross and Robert Atchinson, holds the most valuable position in Enbridge Inc (USA) (NYSE:ENB). Adage Capital Management has a $69.8 million position in the stock, comprising 0.2% of its 13F portfolio. Sitting at the No. 2 spot is Daniel Bubis of Tetrem Capital Management, with a $31.7 million position; the fund has 1% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Jim Simons’s Renaissance Technologies, Christopher C. Grisanti’s Grisanti Brown & Partners and Israel Englander’s Millennium Management.
As aggregate interest increased, some big names were leading the bulls’ herd. D E Shaw, managed by D. E. Shaw, assembled the most valuable position in Enbridge Inc (USA) (NYSE:ENB). D E Shaw had 4.4 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1.6 million position during the quarter. The following funds were also among the new ENB investors: Matthew Tewksbury’s Stevens Capital Management and Eric Sprott’s Sprott Asset Management.
How are insiders trading Enbridge Inc (USA) (NYSE:ENB)?
Insider purchases made by high-level executives is best served when the company in question has seen transactions within the past half-year. Over the latest six-month time period, Enbridge Inc (USA) (NYSE:ENB) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Enbridge Inc (USA) (NYSE:ENB). These stocks are Plains All American Pipeline, L.P. (NYSE:PAA), Spectra Energy Corp. (NYSE:SE), Williams Companies, Inc. (NYSE:WMB), Kinder Morgan Energy Partners LP (NYSE:KMP), and Kinder Morgan Inc (NYSE:KMI). This group of stocks are the members of the oil & gas pipelines industry and their market caps are similar to ENB’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Plains All American Pipeline, L.P. (NYSE:PAA) | 11 | 0 | 3 |
| Spectra Energy Corp. (NYSE:SE) | 20 | 0 | 5 |
| Williams Companies, Inc. (NYSE:WMB) | 41 | 1 | 5 |
| Kinder Morgan Energy Partners LP (NYSE:KMP) | 13 | 0 | 0 |
| Kinder Morgan Inc (NYSE:KMI) | 54 | 0 | 0 |
With the results exhibited by Insider Monkey’s strategies, everyday investors should always watch hedge fund and insider trading activity, and Enbridge Inc (USA) (NYSE:ENB) applies perfectly to this mantra.
