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Hedge Funds Aren’t Crazy About MSC Industrial Direct Co Inc (MSM) Anymore

Due to the fact that MSC Industrial Direct Co Inc (NYSE:MSM) has witnessed falling interest from hedge fund managers, it’s safe to say that there is a sect of hedgies who were dropping their entire stakes heading into Q4. Interestingly, Steve Cohen’s Point72 Asset Management said goodbye to the largest stake of all the hedgies monitored by Insider Monkey, valued at close to $7.9 million in stock, and George Hall’s Clinton Group was right behind this move, as the fund said goodbye to about $5.4 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 5 funds heading into Q4.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as MSC Industrial Direct Co Inc (NYSE:MSM) but similarly valued. We will take a look at DCT Industrial Trust Inc. (NYSE:DCT), Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU), PTC Inc (NASDAQ:PTC), and Sally Beauty Holdings, Inc. (NYSE:SBH). This group of stocks’ market values are closest to MSM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DCT 9 113662 -3
CCU 10 52657 0
PTC 30 987607 -2
SBH 12 115791 -5

As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $317 million. That figure was $556 million in MSM’s case. PTC Inc (NASDAQ:PTC) is the most popular stock in this table. On the other hand DCT Industrial Trust Inc. (NYSE:DCT) is the least popular one with only 9 bullish hedge fund positions. MSC Industrial Direct Co Inc (NYSE:MSM) 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 really like. In this regard PTC might be a better candidate to consider a long position in.

Disclosure: None

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