Has Mallinckrodt PLC (MNK) Turned the Corner?

With general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Healthcor Management LP, managed by Arthur B Cohen and Joseph Healey, created the most outsized position in Mallinckrodt PLC (NYSE:MNK). Healthcor Management LP had $61.1 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also initiated a $14.5 million position during the quarter. The other funds with brand new MNK positions are David Costen Haley’s HBK Investments, David Harding’s Winton Capital Management, and Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Mallinckrodt PLC (NYSE:MNK) but similarly valued. These stocks are CDW Corp (NASDAQ:CDW), RPM International Inc. (NYSE:RPM), The Middleby Corporation (NASDAQ:MIDD), and DDR Corp (NYSE:DDR). This group of stocks’ market caps are similar to MNK’s market cap.

As you can see these stocks had an average of 22.5 hedge funds with bullish positions and the average amount invested in these stocks was $247 million. That figure was $1.44 billion in MNK’s case. The Middleby Corporation (NASDAQ:MIDD) is the most popular stock in this table. On the other hand DDR Corp (NYSE:DDR) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Mallinckrodt PLC (NYSE:MNK) 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 include it in your portfolio.

Disclosure: None