Arcos Dorados Holding Inc (ARCO): Are Hedge Funds Right About The McDonald’s Corporation (MCD)’s Franchisee?

Now, key hedge funds were breaking ground themselves. Laurion Capital Management established the most outsized position in Arcos Dorados Holding Inc (NYSE:ARCO). Laurion Capital Management had $5 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also initiated a $0.5 million position during the quarter. The other funds with brand new ARCO positions are Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners, Chao Ku’s Nine Chapters Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks similar to Arcos Dorados Holding Inc (NYSE:ARCO). These stocks are Seacor Holdings, Inc. (NYSE:CKH), Agree Realty Corporation (NYSE:ADC), Monotype Imaging Holdings Inc. (NASDAQ:TYPE), and The Andersons, Inc. (NASDAQ:ANDE). This group of stocks’ market values are closest to ARCO’s market value.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $98 million. That figure was $34 million in ARCO’s case. Monotype Imaging Holdings Inc. (NASDAQ:TYPE) is the most popular stock in this table. On the other hand Seacor Holdings, Inc. (NYSE:CKH) is the least popular one with only 12 bullish hedge fund positions. Arcos Dorados Holding Inc (NYSE:ARCO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on and investing more money into. In this regard TYPE might be a better candidate to consider taking a long position in.

Disclosure: None