What Do Hedge Funds Think of Monroe Capital Corp (MRCC)?

Now, key money managers were leading the bulls’ herd. McKinley Capital Management, managed by Robert B. Gillam, initiated the most valuable position in Monroe Capital Corp (NASDAQ:MRCC). McKinley Capital Management had $0.5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.4 million investment in the stock during the quarter. The only other fund with a brand new MRCC position is John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s check out hedge fund activity in other stocks similar to Monroe Capital Corp (NASDAQ:MRCC). We will take a look at Aspen Aerogels Inc (NYSE:ASPN), Maxwell Technologies Inc. (NASDAQ:MXWL), HORSEHEAD HOLDING CORP. (NASDAQ:ZINC), and Hurco Companies, Inc. (NASDAQ:HURC). All of these stocks’ market caps match MRCC’s market cap.

As you can see these stocks had an average of 7.5 hedge funds with bullish positions and the average amount invested in these stocks was $26 million. That figure was $2 million in MRCC’s case. HORSEHEAD HOLDING CORP. (NASDAQ:ZINC) is the most popular stock in this table. On the other hand Aspen Aerogels Inc (NYSE:ASPN) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Monroe Capital Corp (NASDAQ:MRCC) is as less popular as ASPN. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.