Is American Capital Mortgage Investment Crp (MTGE) A Good Stock To Buy?

Seeing as American Capital Mortgage Investment Crp (NASDAQ:MTGE) has experienced a falling interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedgies that decided to sell off their positions entirely last quarter. Intriguingly, Eric Halet and Davide Serra’s Algebris Investments dropped the largest stake of the “upper crust” of funds watched by Insider Monkey, totaling about $1.3 million in stock, and William Michaelcheck’s Mariner Investment Group was right behind this move, as the fund dumped about $0.2 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s go over hedge fund activity in other stocks similar to American Capital Mortgage Investment Crp (NASDAQ:MTGE). We will take a look at 8Point3 Energy Partners LP (NASDAQ:CAFD), Quality Systems, Inc. (NASDAQ:QSII), Leju Holdings Ltd (ADR) (NYSE:LEJU), and U.S. Silica Holdings Inc (NYSE:SLCA). This group of stocks’ market values matches American Capital Mortgage Investment Crp (NASDAQ:MTGE)’s market value.

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 $86 million. That figure was $98 million in American Capital Mortgage Investment Crp (NASDAQ:MTGE)’s case. U.S. Silica Holdings Inc (NYSE:SLCA) is the most popular stock in this table. On the other hand, 8Point3 Energy Partners LP (NASDAQ:CAFD) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks, American Capital Mortgage Investment Crp (NASDAQ:MTGE) is even less popular than 8Point3 Energy Partners LP (NASDAQ:CAFD). 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.