Hedge Funds Aren’t Crazy About Mallinckrodt PLC (MNK) Anymore

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Seeing as Mallinckrodt PLC (NYSE:MNK) has faced a bearish sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of funds that slashed their full holdings in the third quarter. Interestingly, Arthur B Cohen and Joseph Healey’s Healthcor Management LP said goodbye to the largest position of all the hedgies watched by Insider Monkey, totaling an estimated $114.8 million in stock, and Roberto Mignone’s Bridger Management was right behind this move, as the fund sold off about $47.1 million worth of shares. These moves are interesting, as aggregate hedge fund interest dropped by 3 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Mallinckrodt PLC (NYSE:MNK). These stocks are Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL), Alleghany Corporation (NYSE:Y), Global Payments Inc (NYSE:GPN), and Sabre Corp (NASDAQ:SABR). All of these stocks’ market caps match Mallinckrodt PLC (NYSE:MNK)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MPEL 22 320399 -1
Y 30 865434 -3
GPN 27 549604 4
SABR 34 848653 -1

As you can see, these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $646 million. That figure was $1.55 billion in Mallinckrodt PLC (NYSE:MNK)’s case. Sabre Corp (NASDAQ:SABR) is the most popular stock in this table. On the other hand, Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) is the least popular one with only 22 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.

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