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Here is What Hedge Funds Think About Brookfield Renewable Partners L.P. (BEP)

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A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended June 30th, so let’s proceed with the discussion of the hedge fund sentiment on Brookfield Renewable Partners L.P. (NYSE:BEP).

Brookfield Renewable Partners L.P. (NYSE:BEP) has seen a decrease in hedge fund interest recently. Brookfield Renewable Partners L.P. (NYSE:BEP) was in 20 hedge funds' portfolios at the end of the second quarter of 2021. The all time high for this statistic is 24. There were 24 hedge funds in our database with BEP positions at the end of the first quarter. Our calculations also showed that BEP isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

If you'd ask most investors, hedge funds are perceived as unimportant, old financial vehicles of the past. While there are greater than 8000 funds trading at present, We look at the elite of this group, around 850 funds. These investment experts administer the majority of all hedge funds' total capital, and by keeping an eye on their top equity investments, Insider Monkey has unearthed a few investment strategies that have historically outrun the broader indices. Insider Monkey's flagship short hedge fund strategy defeated the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Also, our monthly newsletter's portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

Ian Wace Marshall Wace
Ian Wace Marshall Wace

Ian Wace of Marshall Wace

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let's check out the latest hedge fund action surrounding Brookfield Renewable Partners L.P. (NYSE:BEP).

Do Hedge Funds Think BEP Is A Good Stock To Buy Now?

At second quarter's end, a total of 20 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -17% from one quarter earlier. On the other hand, there were a total of 5 hedge funds with a bullish position in BEP a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Israel Englander's Millennium Management has the biggest position in Brookfield Renewable Partners L.P. (NYSE:BEP), worth close to $74.7 million, amounting to less than 0.1%% of its total 13F portfolio. The second largest stake is held by Renaissance Technologies, holding a $68.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions encompass D. E. Shaw's D E Shaw, David Dattels's NewGen Asset Management and Paul Marshall and Ian Wace's Marshall Wace LLP. In terms of the portfolio weights assigned to each position NewGen Asset Management allocated the biggest weight to Brookfield Renewable Partners L.P. (NYSE:BEP), around 5.08% of its 13F portfolio. Quaero Capital is also relatively very bullish on the stock, setting aside 0.87 percent of its 13F equity portfolio to BEP.

Due to the fact that Brookfield Renewable Partners L.P. (NYSE:BEP) has faced falling interest from the smart money, logic holds that there was a specific group of fund managers that elected to cut their full holdings in the second quarter. It's worth mentioning that Stuart J. Zimmer's Zimmer Partners sold off the largest position of all the hedgies tracked by Insider Monkey, worth about $8.3 million in stock, and Rob Citrone's Discovery Capital Management was right behind this move, as the fund dumped about $3.5 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 4 funds in the second quarter.

Let's now take a look at hedge fund activity in other stocks similar to Brookfield Renewable Partners L.P. (NYSE:BEP). We will take a look at Lamar Advertising Company (REIT) (NASDAQ:LAMR), Lear Corporation (NYSE:LEA), China Southern Airlines Co Ltd (NYSE:ZNH), Vereit Inc (NYSE:VER), Bausch Health Companies Inc. (NYSE:BHC), Universal Display Corporation (NASDAQ:OLED), and Lithia Motors Inc (NYSE:LAD). All of these stocks' market caps match BEP's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LAMR,32,387994,-3 LEA,34,1244893,11 ZNH,2,11192,-1 VER,22,797543,-5 BHC,45,3996536,3 OLED,23,105427,6 LAD,63,2924134,23 Average,31.6,1352531,4.9 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 31.6 hedge funds with bullish positions and the average amount invested in these stocks was $1353 million. That figure was $233 million in BEP's case. Lithia Motors Inc (NYSE:LAD) is the most popular stock in this table. On the other hand China Southern Airlines Co Ltd (NYSE:ZNH) is the least popular one with only 2 bullish hedge fund positions. Brookfield Renewable Partners L.P. (NYSE:BEP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for BEP is 40.8. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22nd and surpassed the market again by 1.6 percentage points. Unfortunately BEP wasn't nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); BEP investors were disappointed as the stock returned -1% since the end of June (through 10/22) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.

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Disclosure: None. This article was originally published at Insider Monkey.