Should You Avoid Manitowoc Company Inc (MTW)?

Judging by the fact that Manitowoc Company Inc (NYSE:MTW) has faced falling interest from the smart money, we can see that there is a sect of hedge funds that slashed their positions entirely in the third quarter. Interestingly, Michael Lowenstein’s Kensico Capital dropped the biggest investment of all the hedgies tracked by Insider Monkey, valued at close to $40.5 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund dropped about $2.5 million worth of MTW shares. These moves are important to note, as aggregate hedge fund interest fell by 4 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Manitowoc Company Inc (NYSE:MTW) but similarly valued. These stocks are Eclipse Resources Corp (NYSE:ECR), NutriSystem Inc. (NASDAQ:NTRI), Babcock & Wilcox Enterprises Inc (NYSE:BW), and TCP Capital Corp (NASDAQ:TCPC). All of these stocks’ market caps resemble MTW’s market cap.

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 $170 million in MTW’s case. Babcock & Wilcox Enterprises Inc (NYSE:BW) is the most popular stock in this table. On the other hand TCP Capital Corp (NASDAQ:TCPC) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Manitowoc Company Inc (NYSE:MTW) 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.

Disclosure: none.