Do Hedge Funds Love Morningstar, Inc. (MORN)?

As one would reasonably expect, some big names have been driving this bullishness. Two Sigma Advisors, led by John Overdeck and David Siegel, initiated the biggest position in Morningstar, Inc. (NASDAQ:MORN). Two Sigma Advisors had $0.7 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also initiated a $0.3 million position during the quarter. One more fund with brand new MORN position is Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Morningstar, Inc. (NASDAQ:MORN) but similarly valued. These stocks are Oshkosh Corporation (NYSE:OSK), Lancaster Colony Corp. (NASDAQ:LANC), National Instruments Corp (NASDAQ:NATI), and PrivateBancorp Inc (NASDAQ:PVTB). All of these stocks’ market caps are similar to MORN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OSK 27 262260 11
LANC 14 253505 0
NATI 24 372551 2
PVTB 23 551096 -3

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $360 million. That figure was $188 million in MORN’s case. Oshkosh Corporation (NYSE:OSK) is the most popular stock in this table. On the other hand Lancaster Colony Corp. (NASDAQ:LANC) is the least popular one with only 14 bullish hedge fund positions. Morningstar, Inc. (NASDAQ:MORN) 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 OSK might be a better candidate to consider taking a long position in.

Disclosure: None