Here is What Hedge Funds Think About Multi-Color Corporation (LABL)

As industrywide interest jumped, specific money managers have been driving this bullishness. Driehaus Capital, led by Richard Driehaus, initiated the most outsized position in Multi-Color Corporation (NASDAQ:LABL). According to its latest 13F filing, the fund had $1.7 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also initiated a $0.5 million position during the quarter. The only other fund with a brand new LABL position is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s also examine hedge fund activity in other stocks similar to Multi-Color Corporation (NASDAQ:LABL). We will take a look at Orion Engineered Carbons SA (NYSE:OEC), Momo Inc (ADR) (NASDAQ:MOMO), Adeptus Health Inc (NYSE:ADPT), and Arcos Dorados Holding Inc (NYSE:ARCO). This group of stocks’ market caps match LABL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OEC 12 121102 -1
MOMO 19 233825 10
ADPT 13 183864 -11
ARCO 15 34054 6

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $143 million. That figure was $46 million in LABL’s case. Momo Inc (ADR) (NASDAQ:MOMO) is the most popular stock in this table. On the other hand Orion Engineered Carbons SA (NYSE:OEC) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Multi-Color Corporation (NASDAQ:LABL) is even less popular than OEC. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.