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Hedge Funds Are Buying MDC Partners Inc. (USA) (MDCA)

Does MDC Partners Inc. (USA) (NASDAQ:MDCA) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.

Is MDC Partners Inc. (USA) (NASDAQ:MDCA) the right investment to pursue these days? Prominent investors are becoming hopeful. The number of long hedge fund positions moved up by 7 lately. At the end of this article we will also compare MDCA to other stocks, including Denny’s Corporation (NASDAQ:DENN), Apollo Commercial Real Est. Finance Inc (NYSE:ARI), and Smith & Wesson Holding Corporation (NASDAQ:SWHC) to get a better sense of its popularity.

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If you’d ask most traders, hedge funds are viewed as slow, outdated financial vehicles of the past. While there are over 8000 funds trading at present, We look at the crème de la crème of this club, around 700 funds. These hedge fund managers administer most of the smart money’s total asset base, and by observing their finest equity investments, Insider Monkey has figured out numerous investment strategies that have historically beaten Mr. Market. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points per annum for a decade in their back tests.

With all of this in mind, let’s go over the new action encompassing MDC Partners Inc. (USA) (NASDAQ:MDCA).

What does the smart money think about MDC Partners Inc. (USA) (NASDAQ:MDCA)?

At the end of the third quarter, a total of 25 of the hedge funds tracked by Insider Monkey were bullish on this stock, an increase of 39% from the second quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Roystone Capital Partners, managed by Richard Barrera, holds the most valuable position in MDC Partners Inc. (USA) (NASDAQ:MDCA), worth an estimated $63.1 million and comprising 3% of its 13F portfolio. On Roystone Capital Partners’s heels is GMT Capital, led by Thomas E. Claugus, holding a $62.5 million position; 1.6% of its 13F portfolio is allocated to the company. Some other peers that hold long positions include Amy Minella’s Cardinal Capital, Leon Lowenstein’s Lionstone Capital Management and Israel Englander’s Millennium Management.