Here is What Hedge Funds Think About Milacron Holdings Corp (MCRN)

Due to the fact that Milacron Holdings Corp (NYSE:MCRN) has experienced a declination in interest from hedge fund managers, we can see that there was a specific group of funds that decided to sell off their positions entirely last quarter. At the top of the heap, Nick Niell’s Arrowgrass Capital Partners dropped the biggest position of the “upper crust” of funds monitored by Insider Monkey, valued at an estimated $14.8 million in stock, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund dumped about $10.3 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 5 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Milacron Holdings Corp (NYSE:MCRN) but similarly valued. These stocks are Redwood Trust, Inc. (NYSE:RWT), Ixia (NASDAQ:XXIA), Universal Forest Products, Inc. (NASDAQ:UFPI), and PennyMac Mortgage Investment Trust (NYSE:PMT). All of these stocks’ market caps resemble MCRN’s market cap.

As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $103 million. That figure was $67 million in MCRN’s case. Ixia (NASDAQ:XXIA) is the most popular stock in this table. On the other hand Redwood Trust, Inc. (NYSE:RWT) is the least popular one with only 6 bullish hedge fund positions. Milacron Holdings Corp (NYSE:MCRN) 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 XXIA might be a better candidate to consider a long position.