Hedge Funds Are Dumping Monarch Casino & Resort, Inc. (MCRI)

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cashed in their entire stakes in the stock during the third quarter. At the top of the heap, Dmitry Balyasny’s Balyasny Asset Management cashed in the biggest investment of all the investors studied by Insider Monkey, comprising an estimated $2 million in stock. Ken Grossman and Glen Schneider’s fund, SG Capital Management, also sold off its stock, about $0.8 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Monarch Casino & Resort, Inc. (NASDAQ:MCRI) but similarly valued. These stocks are NewLink Genetics Corp (NASDAQ:NLNK), Winmark Corporation (NASDAQ:WINA), La Jolla Pharmaceutical Company (NASDAQ:LJPC), and Sun Bancorp, Inc. /NJ (NASDAQ:SNBC). All of these stocks’ market caps are similar to MCRI’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $100 million. That figure was $47 million in MCRI’s case. NewLink Genetics Corp (NASDAQ:NLNK) is the most popular stock in this table. On the other hand Winmark Corporation (NASDAQ:WINA) is the least popular one with only 3 bullish hedge fund positions. Monarch Casino & Resort, Inc. (NASDAQ:MCRI) 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 NLNK might be a better candidate to consider taking a long position in.

Disclosure: None