As one would reasonably expect, key hedge funds were breaking ground themselves. Israel Englander’s Millennium Management created the biggest position in Meritor Inc (NYSE:MTOR). Millennium Management had $4.7 million invested in the company at the end of the quarter. Neil Chriss’ Hutchin Hill Capital also made a $1.9 million investment in the stock during the quarter. The other funds with brand new MTOR positions are Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, Glenn Russell Dubin’s Highbridge Capital Management, and John Overdeck and David Siegel’s Two Sigma Advisors.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Meritor Inc (NYSE:MTOR) but similarly valued. These stocks are MINDBODY Inc (NASDAQ:MB), Dime Community Bancshares, Inc. (NASDAQ:DCOM), JinkoSolar Holding Co., Ltd. (NYSE:JKS), and Lattice Semiconductor (NASDAQ:LSCC). This group of stocks’ market valuations match MTOR’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $52 million. That figure was $232 million in MTOR’s case. MINDBODY Inc (NASDAQ:MB) is the most popular stock in this table. On the other hand JinkoSolar Holding Co., Ltd. (NYSE:JKS) is the least popular one with only 5 bullish hedge fund positions. Meritor Inc (NYSE:MTOR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MB might be a better candidate to consider taking a long position in.