Is Marcus & Millichap Inc (MMI) Going to Burn These Hedge Funds?

Due to the fact that Marcus & Millichap Inc (NYSE:MMI) has witnessed a bearish sentiment from hedge fund managers, we can see that there were a few hedgies that elected to cut their entire stakes heading into Q4. It’s worth mentioning that Renaissance Technologies sold off the biggest stake of all the hedgies followed by Insider Monkey, comprising an estimated $5.4 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dumped about $3.8 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest dropped by 4 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to Marcus & Millichap Inc (NYSE:MMI). We will take a look at Enbridge Energy Management, L.L.C. (NYSE:EEQ), Rexnord Corp (NYSE:RXN), Ligand Pharmaceuticals Inc. (NASDAQ:LGND), and Select Income REIT (NYSE:SIR). This group of stocks’ market values resemble Marcus & Millichap Inc (NYSE:MMI)’s market value.

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $123 million. That figure was $70 million in Marcus & Millichap Inc (NYSE:MMI)’s case. Rexnord Corp (NYSE:RXN) is the most popular stock in this table. On the other hand, Enbridge Energy Management, L.L.C. (NYSE:EEQ) is the least popular one with only 7 bullish hedge fund positions. Marcus & Millichap Inc (NYSE:MMI) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Rexnord Corp (NYSE:RXN) might be a better candidate to consider a long position.