Should You Avoid MakeMyTrip Limited (MMYT)?

Seeing as MakeMyTrip Limited (NASDAQ:MMYT) has sustained falling interest from hedge fund managers, it’s safe to say that there were a few money managers who were dropping their positions entirely heading into Q4. It’s worth mentioning that Renaissance Technologies, one of the largest hedge funds in the world, got rid of the biggest stake of all the hedgies tracked by Insider Monkey, comprising close to $1.7 million in stock, and Guru Ramakrishnan’s Meru Capital was right behind this move, as the fund cut about $1.1 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MakeMyTrip Limited (NASDAQ:MMYT) but similarly valued. We will take a look at Select Comfort Corp. (NASDAQ:SCSS), Mercury Systems Inc (NASDAQ:MRCY), Luminex Corporation (NASDAQ:LMNX), and State Auto Financial (NASDAQ:STFC). All of these stocks’ market caps are closest to MMYT’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 $75 million. That figure was $157 million in MMYT’s case. Luminex Corporation (NASDAQ:LMNX) is the most popular stock in this table. On the other hand State Auto Financial (NASDAQ:STFC) is the least popular one with only 4 bullish hedge fund positions. MakeMyTrip Limited (NASDAQ:MMYT) 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 LMNX might be a better candidate to consider taking a long position in.

Disclosure: None