Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets, hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards Marcus Corporation (NYSE:MCS).
Marcus Corporation (NYSE:MCS) shareholders have witnessed an increase in hedge fund sentiment recently. At the end of this article, we will also compare Marcus Corporation (NYSE:MCS) to other stocks, including Haverty Furniture Companies, Inc. (NYSE:HVT), Unifi, Inc. (NYSE:UFI), and Blackrock Muni Intermediate Drtn Fnd Inc (NYSE:MUI) to get a better sense of its popularity.
At the moment, there are plenty of signals shareholders have at their disposal to size up publicly traded companies. A duo of the less utilized signals are hedge fund and insider trading interest. Our experts have shown that, historically, those who follow the best picks of the elite fund managers can outclass the broader indices by a significant amount (see the details here).
With all of this in mind, we’re going to take a gander at the fresh action regarding Marcus Corporation (NYSE:MCS).
How have hedgies been trading Marcus Corporation (NYSE:MCS)?
At the end of the last quarter, a total of 12 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 9% from the second quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, GAMCO Investors, managed by Mario Gabelli, holds the largest position in Marcus Corporation (NYSE:MCS). GAMCO has a $25.4 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is GMT Capital, managed by Thomas E. Claugus, which holds a $13.2 million position; 0.3% of its equity portfolio is allocated to the company. Other peers that are bullish contain Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Israel Englander’s Millennium Management and Renaissance Technologies.