What Do Hedge Funds Think of The Madison Square Garden Co (MSG)?

Since The Madison Square Garden Co (NASDAQ:MSG) has experienced a declination in interest from the entirety of the hedge funds we track, logic holds that there was a specific group of hedge funds that elected to cut their full holdings by the end of the third quarter. Intriguingly, Anand Desai’s Darsana Capital Partners said goodbye to the biggest investment of all the hedgies followed by Insider Monkey, valued at an estimated $69.5 million in stock. Rob Citrone’s fund, Discovery Capital Management, also dropped its stock, about $58.1 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 16 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as The Madison Square Garden Co (NYSE:MSG) but similarly valued. These stocks are Lions Gate Entertainment Corp. (USA) (NYSE:LGF), Lazard Ltd (NYSE:LAZ), OGE Energy Corp. (NYSE:OGE), and 58.com Inc (ADR) (NYSE:WUBA). This group of stocks’ market values match MSG’s market value.

As you can see these stocks had an average of 26.25 hedge funds with bullish positions and the average amount invested in these stocks was $955 million. That figure was $1007 million in MSG’s case. Lions Gate Entertainment Corp. (USA) (NYSE:LGF) is the most popular stock in this table. On the other hand Lazard Ltd (NYSE:LAZ) is the least popular one with only 22 bullish hedge fund positions. The Madison Square Garden Co (NYSE:MSG) 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 LGF might be a better candidate to consider a long position.