How Monmouth R.E. Inv. Corp. (MNR) Stacks Up Against Its Peers

We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: PEAK6 Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Springbok Capital).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Monmouth R.E. Inv. Corp. (NYSE:MNR) but similarly valued. These stocks are Genomic Health, Inc. (NASDAQ:GHDX), Rush Enterprises, Inc. (NASDAQ:RUSHB), Acorda Therapeutics Inc (NASDAQ:ACOR), and Trueblue Inc (NYSE:TBI). All of these stocks’ market caps match MNR’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $242 million. That figure was $46 million in MNR’s case. Genomic Health, Inc. (NASDAQ:GHDX) is the most popular stock in this table. On the other hand Rush Enterprises, Inc. (NASDAQ:RUSHB) is the least popular one with only 4 bullish hedge fund positions. Monmouth R.E. Inv. Corp. (NYSE:MNR) 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 GHDX or ACOR might be better candidates to consider taking a long position in.

Disclosure: None