Is Motorcar Parts of America, Inc. (MPAA) Going to Burn These Hedge Funds?

Due to the fact that Motorcar Parts of America, Inc. (NASDAQ:MPAA) has witnessed a decline in interest from hedge fund managers, logic holds that there exists a select few fund managers that elected to cut their entire stakes heading into Q4. Interestingly, Amy Minella’s Cardinal Capital cashed in the biggest investment of all the investors studied by Insider Monkey, comprising close to $7.3 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also dumped its stock, about $0.7 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Motorcar Parts of America, Inc. (NASDAQ:MPAA). These stocks are Sabine Royalty Trust (NYSE:SBR), MDC Partners Inc. (USA) (NASDAQ:MDCA), Lumber Liquidators Holdings Inc (NYSE:LL), and PennantPark Investment Corp. (NASDAQ:PNNT). All of these stocks’ market caps are closest to MPAA’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $64 million in MPAA’s case. Lumber Liquidators Holdings Inc (NYSE:LL) is the most popular stock in this table. On the other hand PennantPark Investment Corp. (NASDAQ:PNNT) is the least popular one with only 5 bullish hedge fund positions. Motorcar Parts of America, Inc. (NASDAQ:MPAA) 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 LL might be a better candidate to consider taking a long position in.

Disclosure: None