According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, holds the largest position in Enable Midstream Partners LP (NYSE:ENBL). Arrowstreet Capital has a $22.1 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Marshall Wace LLP, led by Paul Marshall and Ian Wace, holding a $13.3 million position; 0.1% of its 13F portfolio is allocated to the company. Other members of the smart money that are bullish include Ken Griffin's Citadel Investment Group, Renaissance Technologies and Ken Griffin's Citadel Investment Group. In terms of the portfolio weights assigned to each position Marshall Wace LLP allocated the biggest weight to Enable Midstream Partners LP (NYSE:ENBL), around 0.09% of its 13F portfolio. Arrowstreet Capital is also relatively very bullish on the stock, designating 0.05 percent of its 13F equity portfolio to ENBL.
We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Zimmer Partners. One hedge fund selling its entire position doesn't always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don't think this is the case in this case because none of the 750+ hedge funds tracked by Insider Monkey identified ENBL as a viable investment and initiated a position in the stock.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Enable Midstream Partners LP (NYSE:ENBL) but similarly valued. These stocks are Nomad Foods Limited (NYSE:NOMD), Dicks Sporting Goods Inc (NYSE:DKS), Axon Enterprise, Inc. (NASDAQ:AAXN), and LHC Group, Inc. (NASDAQ:LHCG). This group of stocks' market caps are closest to ENBL's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NOMD,35,520278,-5 DKS,26,515908,0 AAXN,25,355346,5 LHCG,26,141372,-3 Average,28,383226,-0.75 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $383 million. That figure was $39 million in ENBL's case. Nomad Foods Limited (NYSE:NOMD) is the most popular stock in this table. On the other hand Axon Enterprise, Inc. (NASDAQ:AAXN) is the least popular one with only 25 bullish hedge fund positions. Compared to these stocks Enable Midstream Partners LP (NYSE:ENBL) is even less popular than AAXN. Hedge funds dodged a bullet by taking a bearish stance towards ENBL. Our calculations showed that the top 20 most popular hedge fund stocks returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks lost 13.0% in 2020 through April 6th but managed to beat the market by 4.2 percentage points. Unfortunately ENBL wasn't nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); ENBL investors were disappointed as the stock returned -73.2% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market so far in 2020. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
Disclosure: None. This article was originally published at Insider Monkey.
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