Is Main Street Capital Corporation (MAIN) A Good Stock To Buy?

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With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Clinton Group initiated the biggest position in Main Street Capital Corporation (NYSE:MAIN). Clinton Group had $0.8 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $0.3 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Main Street Capital Corporation (NYSE:MAIN). These stocks are Teekay Offshore Partners L.P. (NYSE:TOO), Kindred Healthcare, Inc. (NYSE:KND), CONMED Corporation (NASDAQ:CNMD), and Brink’s Co (NYSE:BCO). All of these stocks’ market caps are closest to Main Street Capital Corporation (NYSE:MAIN)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TOO 6 40607 2
KND 35 406879 3
CNMD 19 249363 2
BCO 17 408917 -6

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 $276 million. That figure was $18 million in Main Street Capital Corporation (NYSE:MAIN)’s case. Kindred Healthcare, Inc. (NYSE:KND) is the most popular stock in this table. On the other hand, Teekay Offshore Partners L.P. (NYSE:TOO) is the least popular one with only 6 bullish hedge fund positions. Main Street Capital Corporation (NYSE:MAIN) 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, Kindred Healthcare, Inc. (NYSE:KND) might be a better candidate to consider a long position.

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