Should You Buy Nationstar Mortgage Holdings Inc (NSM)?

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At the top of the heap, Brian Taylor’s Pine River Capital Management dropped the largest position of the 700 funds followed by Insider Monkey, worth about $10.1 million in stock. Robert Pohly’s fund, Samlyn Capital, also cut its stock, about $9.8 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Nationstar Mortgage Holdings Inc (NYSE:NSM) but similarly valued. We will take a look at American Axle & Manufact. Holdings, Inc. (NYSE:AXL), Paylocity Holding Corp (NASDAQ:PCTY), Ship Finance International Limited (NYSE:SFL), and Eagle Bancorp, Inc. (NASDAQ:EGBN). This group of stocks’ market values resemble NSM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AXL 19 297821 -3
PCTY 19 88893 8
SFL 16 28713 -3
EGBN 11 105735 1

As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $130 million. That figure was $1,283 million in NSM’s case. American Axle & Manufact. Holdings, Inc. (NYSE:AXL) is the most popular stock in this table. On the other hand Eagle Bancorp, Inc. (NASDAQ:EGBN) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Nationstar Mortgage Holdings Inc (NYSE:NSM) 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.

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