Do Hedge Funds Love Moelis & Co (MC)?

With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Glenn Russell Dubin of Highbridge Capital Management initiated the most valuable position in Moelis & Co (NYSE:MC). Highbridge Capital Management had $0.8 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.5 million investment in the stock during the quarter. The only other fund with a brand new MC position is Matthew Tewksbury’s Stevens Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Moelis & Co (NYSE:MC) but similarly valued. These stocks are Synergy Resources Corp (NYSEAMEX:SYRG), Meritage Homes Corp (NYSE:MTH), Clovis Oncology Inc (NASDAQ:CLVS), and Axovant Sciences Ltd (NYSE:AXON). This group of stocks’ market caps resemble MC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SYRG 12 270087 -6
MTH 10 136566 -1
CLVS 33 752124 12
AXON 20 1198941 6

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $589 million. That figure was $72 million in MC’s case. Clovis Oncology Inc (NASDAQ:CLVS) is the most popular stock in this table. On the other hand Meritage Homes Corp (NYSE:MTH) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Moelis & Co (NYSE:MC) is as less popular than MTH. 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.

Disclosure: None