Have Hedge Funds Uncovered A Hidden Gem in NMI Holdings Inc (NMIH)?

As aggregate interest increased, some big names have been driving this bullishness. Mangrove Partners, managed by Nathaniel August, established the largest position in NMI Holdings Inc (NASDAQ:NMIH). Mangrove Partners had $4.6 million invested in the company at the end of the quarter. Mark Coe’s Coe Capital Management also initiated a $2 million position during the quarter. The other funds with new positions in the stock are Cliff Asness’ AQR Capital Management, Mike Vranos’ Ellington, and Chao Ku’s Nine Chapters Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as NMI Holdings Inc (NASDAQ:NMIH) but similarly valued. We will take a look at DICE HOLDINGS, INC. (NYSE:DHX), Flexion Therapeutics Inc (NASDAQ:FLXN), Natural Health Trends Corp. (NASDAQ:NHTC), and Bill Barrett Corporation (NYSE:BBG). This group of stocks’ market valuations are closest to NMIH’s market valuation.

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $146 million in NMIH’s case. Bill Barrett Corporation (NYSE:BBG) is the most popular stock in this table. On the other hand Flexion Therapeutics Inc (NASDAQ:FLXN) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks NMI Holdings Inc (NASDAQ:NMIH) 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