Do Hedge Funds Love Madison Square Garden Co (MSG)?

Because Madison Square Garden Co (NASDAQ:MSG) has sustained a decline in interest from hedge fund managers, it’s easy to see that there lies a certain “tier” of funds that slashed their full holdings in the third quarter. Interestingly, Jean-Marie Eveillard’s First Eagle Investment Management sold off the largest stake of the 700 funds followed by Insider Monkey, valued at about $160.6 million in stock, and Marc Majzner’s Clearline Capital was right behind this move, as the fund cut about $3.4 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Madison Square Garden Co (NASDAQ:MSG). These stocks are Intercept Pharmaceuticals Inc (NASDAQ:ICPT), Elbit Systems Ltd. (USA) (NASDAQ:ESLT), Gramercy Property Trust Inc (NYSE:GPT), and Hill-Rom Holdings, Inc. (NYSE:HRC). This group of stocks’ market valuations resemble MSG’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $300 million. That figure was $701 million in MSG’s case. Hill-Rom Holdings, Inc. (NYSE:HRC) is the most popular stock in this table. On the other hand Elbit Systems Ltd. (USA) (NASDAQ:ESLT) is the least popular one with only 5 bullish hedge fund positions. Madison Square Garden Co (NASDAQ:MSG) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HRC might be a better candidate to consider taking a long position in.

Disclosure: none.