Is Universal American Corporation (UAM) A Good Stock To Buy?

Judging by the fact that Universal American Corporation (NYSE:UAM) has weathered a decline in interest from hedge fund managers, we can see that there is a sect of hedgies that slashed their positions entirely heading into Q4. It’s worth mentioning that Matthew Hulsizer’s PEAK6 Capital Management dumped the biggest investment of all the investors monitored by Insider Monkey, valued at close to $0.2 million in stock, and Millennium Management, one of the 10 largest hedge funds in the world, was right behind this move, as the fund dumped about $0.2 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Universal American Corporation (NYSE:UAM) but similarly valued. We will take a look at Sequential Brands Group Inc (NASDAQ:SQBG), Entercom Communications Corp. (NYSE:ETM), JinkoSolar Holding Co., Ltd. (NYSE:JKS), and Matrix Service Co (NASDAQ:MTRX). This group of stocks’ market values are similar to UAM’s market value.

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 $39 million. That figure was $132 million in UAM’s case. Matrix Service Co (NASDAQ:MTRX) is the most popular stock in this table. On the other hand JinkoSolar Holding Co., Ltd. (NYSE:JKS) is the least popular one with only 5 bullish hedge fund positions. Universal American Corporation (NYSE:UAM) 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 MTRX might be a better candidate to consider taking a long position in.

Disclosure: none.