Do Hedge Funds Love Morgans Hotel Group Co. (MHGC)?

With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Vishal Bhutani and Joshua Bederman of Pyrrho Capital Management established the most valuable position in Morgans Hotel Group Co. (NASDAQ:MHGC). Pyrrho Capital Management had $0.1 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $0.1 million position during the quarter. The only other fund with a brand new MHGC position is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now review hedge fund activity in other stocks similar to Morgans Hotel Group Co. (NASDAQ:MHGC). These stocks are Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG), Key Technology, Inc. (NASDAQ:KTEC), UCP Inc (NYSE:UCP), and Sophiris Bio Inc (NASDAQ:SPHS). This group of stocks’ market caps are similar to MHGC’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $11 million in MHGC’s case. Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG) is the most popular stock in this table. On the other hand UCP Inc (NYSE:UCP) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Morgans Hotel Group Co. (NASDAQ:MHGC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None