Should You Add Media General, Inc. (MEG) to Your Portfolio?

Due to the fact that Media General, Inc. (NYSE:MEG) has experienced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of fund managers who were dropping their positions entirely by the end of the third quarter. Intriguingly, Warren Buffett’s Berkshire Hathaway cut the largest position of the 700 funds watched by Insider Monkey, totaling close to $59.7 million in stock, and John Orrico’s Water Island Capital was right behind this move, as the fund dropped about $16.3 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 3 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Media General, Inc. (NYSE:MEG) but similarly valued. We will take a look at J&J Snack Foods Corp. (NASDAQ:JJSF), Dril-Quip, Inc. (NYSE:DRQ), Terex Corporation (NYSE:TEX), and Rowan Companies PLC (NYSE:RDC). This group of stocks’ market values resemble MEG’s market value.

As you can see these stocks had an average of 21 funds holding long positions and the average amount invested in these stocks was $243 million, compared to $751 million in MEG’s case. Rowan Companies PLC (NYSE:RDC) is the most popular stock in this table. On the other hand J&J Snack Foods Corp. (NASDAQ:JJSF) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Media General, Inc. (NYSE:MEG) 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.