Is MGM Growth Properties LLC (MGP) a Good Stock to Buy?

Consequently, some big names have jumped into MGM Growth Properties LLC (NYSE:MGP) headfirst. Caxton Associates LP, led by Bruce Kovner, established the most valuable position in MGM Growth Properties LLC (NYSE:MGP) . Caxton Associates LP had $13.4 million invested in the company at the end of the quarter. Greg Poole’s Echo Street Capital Management also made a $7.2 million investment in the stock during the quarter. The other funds with brand new MGP positions are Philip Hempleman’s Ardsley Partners, Solomon Kumin’s Folger Hill Asset Management, and Drew Cupps’ Cupps Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as MGM Growth Properties LLC (NYSE:MGP) but similarly valued. These stocks are Smith & Wesson Holding Corporation (NASDAQ:SWHC), TASER International, Inc. (NASDAQ:TASR), United Community Banks Inc (NASDAQ:UCBI), and Five Prime Therapeutics Inc (NASDAQ:FPRX). All of these stocks’ market caps match MGP’s market cap.

As you can see these stocks had an average of 16 funds with bullish positions and the average amount invested in these stocks was $133 million. That figure was $373 million in MGP’s case. Smith & Wesson Holding Corporation (NASDAQ:SWHC) is the most popular stock in this table. On the other hand TASER International, Inc. (NASDAQ:TASR) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks MGM Growth Properties LLC (NYSE:MGP) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None