Hedge Funds Are Buying McDermott International (MDR)

Consequently, some big names have been driving this bullishness. Akanthos Capital, led by Michael Kao, established the most outsized call position in McDermott International (NYSE:MDR). According to regulatory filings, the fund had $5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.4 million investment in the stock during the quarter. The other funds with brand new MDR positions are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as McDermott International (NYSE:MDR) but similarly valued. We will take a look at Seadrill Ltd (NYSE:SDRL), Inogen Inc (NASDAQ:INGN), Teekay LNG Partners L.P. (NYSE:TGP), and Golar LNG Partners LP (NASDAQ:GMLP). This group of stocks’ market caps match MDR’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $109 million in MDR’s case. Seadrill Ltd (NYSE:SDRL) is the most popular stock in this table. On the other hand Teekay LNG Partners L.P. (NYSE:TGP) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks McDermott International (NYSE:MDR) 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.