Hedge Funds Are Buying MainSource Financial Group Inc. (MSFG)

As industrywide interest jumped, key money managers were breaking ground themselves. Citadel Investment Group, managed by Ken Griffin, created the most outsized position in MainSource Financial Group Inc. (NASDAQ:MSFG), worth $0.3 million as mentioned earlier. Israel Englander’s Millennium Management also made a $0.2 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MainSource Financial Group Inc. (NASDAQ:MSFG) but similarly valued. We will take a look at CNinsure Inc. (ADR) (NASDAQ:CISG), China Cord Blood Corp (NYSE:CO), Cerus Corporation (NASDAQ:CERS), and iDreamSky Technology Ltd(ADR) (NASDAQ:DSKY). This group of stocks’ market valuations match MSFG’s market valuation.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was a minor $6 million in MSFG’s case. Cerus Corporation (NASDAQ:CERS) is the most popular stock in this table, while CNinsure Inc. (ADR) (NASDAQ:CISG) is at the other end of the specter with only 4 bullish hedge fund positions. Compared to these stocks MainSource Financial Group Inc. (NASDAQ:MSFG) is even less popular than CISG. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.