The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 700 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider American Capital Mortgage Investment Crp (NASDAQ:MTGE) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Is American Capital Mortgage Investment Crp (NASDAQ:MTGE) a worthy investment today? Hedge funds are reducing their bets on the stock. The number of bullish hedge fund bets retreated by 2 in recent months. American Capital Mortgage Investment Crp (NASDAQ:MTGE) was in 9 hedge funds’ portfolios at the end of the third quarter of 2015. There were 11 hedge funds in our database with American Capital Mortgage Investment Crp (NASDAQ:MTGE) positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as 8Point3 Energy Partners LP (NASDAQ:CAFD), Quality Systems, Inc. (NASDAQ:QSII), and Leju Holdings Ltd (ADR) (NYSE:LEJU) to gather more data points.
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If you’d ask most traders, hedge funds are perceived as slow, outdated financial vehicles of years past. While there are more than an 8000 funds in operation at the moment, Our researchers hone in on the top tier of this group, around 700 funds. These investment experts command bulk of the hedge fund industry’s total capital, and by watching their best picks, Insider Monkey has unearthed a few investment strategies that have historically outpaced Mr. Market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
With all of this in mind, let’s go over the fresh action encompassing American Capital Mortgage Investment Crp (NASDAQ:MTGE).
How are hedge funds trading American Capital Mortgage Investment Crp (NASDAQ:MTGE)?
At the end of Q3, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decline of 18% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Stephen Feinberg’s Cerberus Capital Management has the biggest position in American Capital Mortgage Investment Crp (NASDAQ:MTGE), worth close to $31.8 million, amounting to 2.6% of its total 13F portfolio. On Cerberus Capital Management’s heels is Brian Taylor of Pine River Capital Management, with a $23.2 million position; 0.4% of its 13F portfolio is allocated to the stock. Other peers that hold long positions encompass Nathaniel August’s Mangrove Partners, Andy Redleaf’s Whitebox Advisors, and Ken Griffin’s Citadel Investment Group.
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.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CAFD | 10 | 42088 | -5 |
| QSII | 17 | 48357 | 0 |
| LEJU | 12 | 8802 | 1 |
| SLCA | 22 | 243161 | -10 |
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.
