At Insider Monkey we follow around 730 of the best-performing investors and even though many of them lost money in the last several months, the history teaches us that over the long-run they still manage to beat the market, which is why it can be profitable for us to imitate their activity. Of course, even the best money managers can sometimes get it wrong, but following some of their picks gives us a better chance to outperform the crowd than picking a random stock and this is where our research comes in.
Markwest Energy Partners LP (NYSE:MWE) shareholders have witnessed an increase in hedge fund sentiment in recent months. At the end of this article we will also compare MWE to other stocks including Quintiles Transnational Holdings Inc (NYSE:Q), ArcelorMittal (ADR) (NYSE:MT), and Westinghouse Air Brake Technologies Corp (NYSE:WAB) to get a better sense of its popularity.
Follow Markwest Energy Partners L P (NYSE:MWE)
Follow Markwest Energy Partners L P (NYSE:MWE)
With all of this in mind, let’s analyze the key action surrounding Markwest Energy Partners LP (NYSE:MWE).
What have hedge funds been doing with Markwest Energy Partners LP (NYSE:MWE)?
Heading into Q4, a total of 17 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 31% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who were increasing their holdings meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, OZ Management, managed by Daniel S. Och, holds the most valuable position in Markwest Energy Partners LP (NYSE:MWE). OZ Management has a $143.4 million position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Stockbridge Partners, led by Sharlyn C. Heslam, holding a $110.6 million position; 6.3% of its 13F portfolio is allocated to the stock. Other peers that are bullish contain Israel Englander’s Millennium Management, James Dondero’s Highland Capital Management and Curtis Macnguyen’s Ivory Capital (Investment Mgmt).
As aggregate interest increased, key money managers have jumped into Markwest Energy Partners LP (NYSE:MWE) headfirst. Ivory Capital (Investment Mgmt), managed by Curtis Macnguyen, created the biggest call position in Markwest Energy Partners LP (NYSE:MWE). Ivory Capital (Investment Mgmt) had $21.5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $15.2 million investment in the stock during the quarter. The other funds with brand new MWE positions are Nick Niell’s Arrowgrass Capital Partners, Noam Gottesman’s GLG Partners, and John Orrico’s Water Island Capital.
Let’s also examine hedge fund activity in other stocks similar to Markwest Energy Partners LP (NYSE:MWE). We will take a look at Quintiles Transnational Holdings Inc (NYSE:Q), ArcelorMittal (ADR) (NYSE:MT), Westinghouse Air Brake Technologies Corp (NYSE:WAB), and Huntington Bancshares Incorporated (NASDAQ:HBAN). All of these stocks’ market caps match MWE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| Q | 34 | 466908 | 5 |
| MT | 18 | 231752 | -4 |
| WAB | 27 | 297771 | -6 |
| HBAN | 20 | 112883 | -4 |
As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $277 million. That figure was $413 million in MWE’s case. Quintiles Transnational Holdings Inc (NYSE:Q) is the most popular stock in this table. On the other hand ArcelorMittal (ADR) (NYSE:MT) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Markwest Energy Partners LP (NYSE:MWE) is even less popular than MT. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
