Hedge Funds Aren’t Crazy About MFC Industrial Ltd (MIL) Anymore

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Because MFC Industrial Ltd (NYSE:MIL) has faced a declining sentiment from hedge fund managers, it’s safe to say that there exists a select few money managers who sold off their positions entirely by the end of the third quarter. Interestingly, Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners dumped the biggest position of the “upper crust” of funds monitored by Insider Monkey, valued at close to $47,000 in stock. Ken Griffin’s fund, Citadel Investment Group, also dumped its stock, about $40,000 worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as MFC Industrial Ltd (NYSE:MIL) but similarly valued. These stocks are Repros Therapeutics Inc (NASDAQ:RPRX), SeaSpine Holdings Corp (NASDAQ:SPNE), Avinger Inc (NASDAQ:AVGR), and Quinpario Acquisition Corp 2 (NASDAQ:QPACU). This group of stocks’ market caps are similar to MIL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RPRX 17 44493 -2
SPNE 11 63426 11
AVGR 5 14538 0
QPACU 16 158867 0

As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $70 million. That figure was $2 million in MIL’s case. Repros Therapeutics Inc (NASDAQ:RPRX) is the most popular stock in this table. On the other hand Avinger Inc (NASDAQ:AVGR) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks MFC Industrial Ltd (NYSE:MIL) is even less popular than AVGR. 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.

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