Do Hedge Funds Love MDC Partners Inc (MDCA)?

Judging by the fact that MDC Partners Inc. (NASDAQ:MDCA) has encountered declining sentiment from the smart money, it’s safe to say that there were a few hedge funds that elected to cut their positions entirely in the third quarter. It’s worth mentioning that Principal Global Investors’ Columbus Circle Investors cashed in the biggest investment of the 700 funds studied by Insider Monkey, valued at close to $25.5 million in stock, and Robert Joseph Caruso’s Select Equity Group was right behind this move, as the fund said goodbye to about $6.3 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to MDC Partners Inc. (NASDAQ:MDCA). We will take a look at Lumber Liquidators Holdings Inc (NYSE:LL), PennantPark Investment Corp. (NASDAQ:PNNT), First Potomac Realty Trust (NYSE:FPO), and Xenith Bankshares Inc (NASDAQ:XBKS). This group of stocks’ market valuations are similar to MDCA’s market valuation.

As you can see these stocks had an average of nine funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $104 million in MDCA’s case. Lumber Liquidators Holdings Inc (NYSE:LL) is the most popular stock in this table. On the other hand PennantPark Investment Corp. (NASDAQ:PNNT) is the least popular one with only five bullish hedge fund positions. MDC Partners Inc. (NASDAQ:MDCA) 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. In this regard LL might be a better candidate to consider taking a long position in.

Disclosure: None