Is Enbridge Energy Management, L.L.C. (EEQ) Going to Burn These Hedge Funds?

Is Enbridge Energy Management, L.L.C. (NYSE:EEQ) worth your attention right now? Hedge funds are taking a pessimistic view. The number of bullish hedge fund positions were trimmed by 1 recently.

In the 21st century investor’s toolkit, there are dozens of methods market participants can use to analyze Mr. Market. Some of the best are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best money managers can beat their index-focused peers by a very impressive amount (see just how much).

Equally as important, optimistic insider trading sentiment is another way to parse down the stock market universe. Obviously, there are a variety of stimuli for an executive to cut shares of his or her company, but only one, very clear reason why they would initiate a purchase. Many academic studies have demonstrated the market-beating potential of this tactic if “monkeys” know where to look (learn more here).

Now, let’s take a look at the recent action encompassing Enbridge Energy Management, L.L.C. (NYSE:EEQ).

Hedge fund activity in Enbridge Energy Management, L.L.C. (NYSE:EEQ)

In preparation for this year, a total of 4 of the hedge funds we track were bullish in this stock, a change of -20% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their stakes considerably.

Because Enbridge Energy Management, L.L.C. (NYSE:EEQ) has experienced declining sentiment from the smart money, logic holds that there was a specific group of fund managers who sold off their full holdings in Q4. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital said goodbye to the biggest investment of all the hedgies we watch, worth an estimated $2.2 million in stock.. Cliff Asness’s fund, AQR Capital Management, also sold off its stock, about $0.3 million worth. These moves are important to note, as total hedge fund interest dropped by 1 funds in Q4.

How are insiders trading Enbridge Energy Management, L.L.C. (NYSE:EEQ)?

Bullish insider trading is best served when the company in question has seen transactions within the past six months. Over the latest 180-day time period, Enbridge Energy Management, L.L.C. (NYSE:EEQ) has experienced 3 unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to Enbridge Energy Management, L.L.C. (NYSE:EEQ). These stocks are Crosstex Energy, L.P. (NASDAQ:XTEX), PDC Energy Inc (NASDAQ:PDCE), Bonanza Creek Energy Inc (NYSE:BCEI), EXCO Resources Inc (NYSE:XCO), and Gran Tierra Energy Inc. (NYSEAMEX:GTE). All of these stocks are in the independent oil & gas industry and their market caps are closest to EEQ’s market cap.

With the returns demonstrated by the aforementioned studies, retail investors must always monitor hedge fund and insider trading activity, and Enbridge Energy Management, L.L.C. (NYSE:EEQ) is no exception.

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