Should You Buy MBIA Inc. (MBI)?

As industrywide interest jumped, some big names were breaking ground themselves. Cobalt Capital Management, managed by Wayne Cooperman, created the most valuable position in MBIA Inc. (NYSE:MBI). Cobalt Capital Management had $3.3 million invested in the company at the end of the quarter. Benjamin A. Smith’s Laurion Capital Management also initiated a $1.7 million position during the quarter. The following funds were also among the new MBI investors: Steve Cohen’s Point72 Asset Management, Glenn Russell Dubin’s Highbridge Capital Management, and Mike Vranos’s Ellington.

Let’s now take a look at hedge fund activity in other stocks similar to MBIA Inc. (NYSE:MBI). We will take a look at Outerwall Inc (NASDAQ:OUTR), Meritor Inc (NYSE:MTOR), McDermott International (NYSE:MDR), and InfraREIT Inc (NYSE:HIFR). All of these stocks’ market caps are closest to MBI’s market cap.

As you can see these stocks had an average of 23.25 hedge funds with bullish positions and the average amount invested in these stocks was $248 million. That figure was $263 million in MBI’s case. Outerwall Inc (NASDAQ:OUTR) is the most popular stock in this table. On the other hand InfraREIT Inc (NYSE:HIFR) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks MBIA Inc. (NYSE:MBI) 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.