Is AG Mortgage Investment Trust Inc (MITT) A Good Stock To Buy?

As industrywide interest jumped, key hedge funds have jumped into AG Mortgage Investment Trust Inc (NYSE:MITT) headfirst. AQR Capital Management, managed by Cliff Asness, established the most outsized position in AG Mortgage Investment Trust Inc (NYSE:MITT). AQR Capital Management had $0.2 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.1 million position during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as AG Mortgage Investment Trust Inc (NYSE:MITT) but similarly valued. These stocks are LivePerson, Inc. (NASDAQ:LPSN), FutureFuel Corp. (NYSE:FF), Otonomy Inc (NASDAQ:OTIC), and Newpark Resources Inc (NYSE:NR). All of these stocks’ market caps resemble AG Mortgage Investment Trust Inc (NYSE:MITT)’s market cap.

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $17 million in AG Mortgage Investment Trust Inc (NYSE:MITT)’s case. LivePerson, Inc. (NASDAQ:LPSN) is the most popular stock in this table. On the other hand, Newpark Resources Inc (NYSE:NR) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks, AG Mortgage Investment Trust Inc (NYSE:MITT) is even less popular than Newpark Resources Inc (NYSE:NR). 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.