Hedge Funds Love MicroStrategy Incorporated (MSTR), But Not Quite As Much

Judging by the fact that MicroStrategy Incorporated (NASDAQ:MSTR) has experienced declining sentiment from hedge fund managers, logic holds that there exists a select few hedge funds that decided to sell off their full holdings heading into Q4. At the top of the heap, First Eagle Investment Management cut the largest investment of the “upper crust” of funds followed by Insider Monkey, worth about $65.9 million in stock, and Alex Sacerdote’s Whale Rock Capital Management was right behind this move, as the fund dumped about $33.2 million worth of MSTR shares. These bearish behaviors are interesting, as total hedge fund interest fell by 3 funds heading into Q4.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as MicroStrategy Incorporated (NASDAQ:MSTR) but similarly valued. We will take a look at Rexnord Corp (NYSE:RXN), Watts Water Technologies Inc (NYSE:WTS), Pretium Resources Inc (NYSE:PVG), and Dorman Products Inc. (NASDAQ:DORM). All of these stocks’ market caps resemble MSTR’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $215 million. That figure was $307 million in MSTR’s case. Rexnord Corp (NYSE:RXN) is the most popular stock in this table. On the other hand Dorman Products Inc. (NASDAQ:DORM) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks MicroStrategy Incorporated (NASDAQ:MSTR) 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, bearing in mind the recent decline in ownership among successful investors.

Disclosure: None