Should You Avoid Mednax Inc. (MD)?

Page 2 of 2

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. Interestingly, Jim Simons’ Renaissance Technologies, one of the largest hedge funds in the world, said goodbye to the biggest position of all the investors watched by Insider Monkey, valued at about $18.3 million in MEDNAX Inc. (NYSE:MD) stock, and Clint Carlson’s Carlson Capital was right behind this move, as the fund said goodbye to about $14.1 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to MEDNAX Inc. (NYSE:MD). These stocks are EQT Midstream Partners LP (NYSE:EQM), PerkinElmer, Inc. (NYSE:PKI), Braskem SA (ADR) (NYSE:BAK), and Owens Corning (NYSE:OC). All of these stocks’ market caps match MD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EQM 8 66731 -3
PKI 25 436280 -1
BAK 8 45996 3
OC 35 1197532 1

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $437 million. That figure was $123 million in MD’s case. Owens Corning (NYSE:OC) is the most popular stock in this table. On the other hand EQT Midstream Partners LP (NYSE:EQM) is the least popular one with only 8 bullish hedge fund positions. MEDNAX Inc. (NYSE:MD) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard OC might be a better candidate to consider taking a long position in.

Disclosure: none.

Page 2 of 2