Monmouth R.E. Inv. Corp. (MNR): Are Hedge Funds Right About This Stock?

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Since Monmouth R.E. Inv. Corp. (NYSE:MNR) has experienced a falling interest from hedge fund managers, it’s safe to say that there is a sect of hedge funds that elected to cut their full holdings in the third quarter. It’s worth mentioning that Israel Englander’s Millennium Management dropped the largest stake of all the hedgies tracked by Insider Monkey, worth about $1.6 million in stock. Peter Muller’s fund, PDT Partners, also dropped its stock, about $0.1 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest was cut by 1 fund in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Monmouth R.E. Inv. Corp. (NYSE:MNR) but similarly valued. We will take a look at Matrix Service Co (NASDAQ:MTRX), Heritage Insurance Holdings Inc (NYSE:HRTG), Gran Tierra Energy Inc. (NYSEMKT:GTE), and Capital Senior Living Corporation (NYSE:CSU). This group of stocks’ market values are similar to Monmouth R.E. Inv. Corp. (NYSE:MNR)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MTRX 14 81195 1
HRTG 13 85175 1
GTE 16 120028 -1
CSU 19 145213 0

As you can see, these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $108 million. That figure was $23 million in Monmouth R.E. Inv. Corp. (NYSE:MNR)’s case. Capital Senior Living Corporation (NYSE:CSU) is the most popular stock in this table. On the other hand, Heritage Insurance Holdings Inc (NYSE:HRTG) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks, Monmouth R.E. Inv. Corp. (NYSE:MNR) is even less popular than Heritage Insurance Holdings Inc (NYSE:HRTG). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.

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