Here is What Hedge Funds Think About Magellan Health Inc (MGLN)

Consequently, specific money managers have been driving this bullishness. Two Sigma Advisors, managed by John Overdeck and David Siegel, established the most outsized position in Magellan Health Services Inc (NASDAQ:MGLN). Two Sigma Advisors had $2.4 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also initiated a $2 million position during the quarter. The following funds were also among the new MGLN investors: Peter Muller’s PDT Partners, Mike Vranos’s Ellington, and Israel Englander’s Millennium Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Magellan Health Services Inc (NASDAQ:MGLN) but similarly valued. We will take a look at Virgin America Inc (NASDAQ:VA), 2U Inc (NASDAQ:TWOU), MSA Safety Inc (NYSE:MSA), and Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD). All of these stocks’ market caps are closest to Magellan Health Inc (NASDAQ:MGLN)’s market cap.

As you can see, these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $246 million. That figure was $257 million in Magellan Health Inc (NASDAQ:MGLN)’s case. Virgin America Inc (NASDAQ:VA) is the most popular stock in this table. On the other hand, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is the least popular one with only 17 bullish hedge fund positions. Magellan Health Services Inc (NASDAQ:MGLN) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Virgin America Inc (NASDAQ:VA) might be a better candidate to consider a long position.