Here Is What Hedge Funds Think About MSC Industrial Direct Co Inc (MSM)

Consequently, key money managers have jumped into MSC Industrial Direct Co Inc (NYSE:MSM) headfirst. Arlington Value Capital, managed by Allan Mecham and Ben Raybould, initiated the most outsized position in MSC Industrial Direct Co Inc (NYSE:MSM). Arlington Value Capital had $73.7 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also initiated a $6.6 million position during the quarter. The other funds with brand new MSM positions are Israel Englander’s Millennium Management, Jim Simons’ Renaissance Technologies, and Paul Tudor Jones’ Tudor Investment Corp.

Let’s also examine 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 Cinemark Holdings, Inc. (NYSE:CNK), Amsurg Corp (NASDAQ:AMSG), Restoration Hardware Holdings Inc (NYSE:RH), and Sally Beauty Holdings, Inc. (NYSE:SBH). This group of stocks’ market values resemble MSM’s market value.

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $475 million. That figure was $606 million in MSM’s case. Restoration Hardware Holdings Inc (NYSE:RH) is the most popular stock in this table. On the other hand Cinemark Holdings, Inc. (NYSE:CNK) is the least popular one with only 19 bullish hedge fund positions. MSC Industrial Direct Co Inc (NYSE:MSM) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RH might be a better candidate to consider a long position.