Does Houghton Mifflin Harcourt Co (HMHC) Represent A Good Investment?

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As aggregate interest increased, key hedge funds have been driving this bullishness. Segantii Capital, managed by Simon Sadler, assembled the most outsized position in Houghton Mifflin Harcourt Co (NASDAQ:HMHC). Segantii Capital had $22.2 million invested in the company at the end of the quarter. Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC also made a $11.9 million investment in the stock during the quarter. The following funds were also among the new HMHC investors: Renaissance Technologies, Ken Griffin’s Citadel Investment Group, and Brian Taylor’s Pine River Capital Management.

Let’s check out hedge fund activity in other stocks similar to Houghton Mifflin Harcourt Co (NASDAQ:HMHC). We will take a look at Bruker Corporation (NASDAQ:BRKR), Care Capital Properties Inc (NYSE:CCP), Sunstone Hotel Investors Inc (NYSE:SHO), and Bank of Hawaii Corporation (NYSE:BOH). All of these stocks’ market caps are similar to HMHC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BRKR 20 137638 5
CCP 13 106887 13
SHO 10 64209 -5
BOH 7 33901 0

As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $1.03 billion in HMHC’s case. Bruker Corporation (NASDAQ:BRKR) is the most popular stock in this table with 20 funds disclosing stakes as of September 30. On the other hand Bank of Hawaii Corporation (NYSE:BOH) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Houghton Mifflin Harcourt Co (NASDAQ:HMHC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially acquire shares for your portfolio

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