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Hedge Funds Have Never Been More Bullish On MAXIMUS, Inc. (MMS)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have gone over 730 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 28th. In this article we look at what those investors think of MAXIMUS, Inc. (NYSE:MMS).

MAXIMUS, Inc. (NYSE:MMS) has experienced an increase in support from the world’s most elite money managers of late. MMS was in 22 hedge funds’ portfolios at the end of the second quarter of 2019. There were 20 hedge funds in our database with MMS positions at the end of the previous quarter. Our calculations also showed that MMS isn’t among the 30 most popular stocks among hedge funds (view the video below).
5 Most Popular Stocks Among Hedge Funds
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

To the average investor there are tons of indicators investors can use to analyze their holdings. A duo of the less known indicators are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best investment managers can outclass the S&P 500 by a solid margin (see the details here).

MMS_oct2019

We’re going to analyze the key hedge fund action encompassing MAXIMUS, Inc. (NYSE:MMS).

What does smart money think about MAXIMUS, Inc. (NYSE:MMS)?

Heading into the third quarter of 2019, a total of 22 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MMS over the last 16 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Bruce Kovner, Caxton Associates LP

According to Insider Monkey’s hedge fund database, Claus Moller’s P2 Capital Partners has the biggest position in MAXIMUS, Inc. (NYSE:MMS), worth close to $78.6 million, corresponding to 6% of its total 13F portfolio. Coming in second is GLG Partners, led by Noam Gottesman, holding a $51 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions encompass Cliff Asness’s AQR Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Robert B. Gillam’s McKinley Capital Management.

Consequently, some big names have jumped into MAXIMUS, Inc. (NYSE:MMS) headfirst. Marshall Wace LLP, managed by Paul Marshall and Ian Wace, assembled the biggest position in MAXIMUS, Inc. (NYSE:MMS). Marshall Wace LLP had $1.2 million invested in the company at the end of the quarter. David Harding’s Winton Capital Management also made a $1 million investment in the stock during the quarter. The following funds were also among the new MMS investors: Matthew Tewksbury’s Stevens Capital Management, Bruce Kovner’s Caxton Associates LP, and Steve Cohen’s Point72 Asset Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as MAXIMUS, Inc. (NYSE:MMS) but similarly valued. We will take a look at First Horizon National Corporation (NYSE:FHN), OneMain Holdings Inc (NYSE:OMF), Empire State Realty Trust Inc (NYSE:ESRT), and Affiliated Managers Group, Inc. (NYSE:AMG). This group of stocks’ market caps are closest to MMS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FHN 23 210330 7
OMF 27 359958 -4
ESRT 12 142029 -2
AMG 20 383803 -3
Average 20.5 274030 -0.5

View table here if you experience formatting issues.

As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $274 million. That figure was $219 million in MMS’s case. OneMain Holdings Inc (NYSE:OMF) is the most popular stock in this table. On the other hand Empire State Realty Trust Inc (NYSE:ESRT) is the least popular one with only 12 bullish hedge fund positions. MAXIMUS, Inc. (NYSE:MMS) is not the most popular stock in this group but hedge fund interest is still above average. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. Hedge funds were also right about betting on MMS as the stock returned 6.9% during the third quarter and outperformed the market. Hedge funds were rewarded for their relative bullishness.

Disclosure: None. This article was originally published at Insider Monkey.

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