Hedge Funds Are Buying MDC Partners Inc. (USA) (MDCA)

Consequently, some big names have been driving this bullishness. Millennium Management, managed by Israel Englander, created the biggest position in MDC Partners Inc. (USA) (NASDAQ:MDCA). Millennium Management had $15.4 million invested in the company at the end of the quarter. Robert Joseph Caruso’s Select Equity Group also made an $8.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Richard McGuire’s Marcato Capital Management, Neil Chriss’s Hutchin Hill Capital, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MDC Partners Inc. (USA) (NASDAQ:MDCA) but similarly valued. These stocks are Denny’s Corporation (NASDAQ:DENN), Apollo Commercial Real Est. Finance Inc (NYSE:ARI), Smith & Wesson Holding Corporation (NASDAQ:SWHC), and Infinity Property and Casualty Corp. (NASDAQ:IPCC). This group of stocks’ market caps are closest to MDCA’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $88 million. That figure was $268 million in MDCA’s case. Smith & Wesson Holding Corporation (NASDAQ:SWHC) is the most popular stock in this table. On the other hand Infinity Property and Casualty Corp. (NASDAQ:IPCC) is the least popular one with only 8 bullish hedge fund positions. MDC Partners Inc. (USA) (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 SWHC might be a better candidate to consider a long position.