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Is Harmony Merger Corp (HRMN) a Good Stock To Buy?

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Harmony Merger Corp (NASDAQ:HRMN).

Harmony Merger Corp (NASDAQ:HRMN) experienced an increase in support from the world’s most successful money managers during the third quarter. At the end of September, seven funds tracked by Insider Monkey held shares of HRMN. 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 Stage Stores Inc (NYSE:SSI), Salem Communications Corp (NASDAQ:SALM), and Silvercrest Asset Management Group Inc (NASDAQ:SAMG) to gather more data points.

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Keeping this in mind, let’s take a gander at the fresh action surrounding Harmony Merger Corp (NASDAQ:HRMN).

What does the smart money think about Harmony Merger Corp (NASDAQ:HRMN)?

At Q3’s end, seven funds tracked by Insider Monkey were bullish on this stock, up by one fund from the end of the second quarter. On the other hand, there were six hedge funds with a bullish position in HRMN at the beginning of this year. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).


According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Jeffrey Tannenbaum’s Fir Tree has the number one position in Harmony Merger Corp (NASDAQ:HRMN), worth close to $12 million, comprising 0.5% of its total 13F portfolio. Coming in second is Hudson Bay Capital Management, led by Sander Gerber, holding a $10.1 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish encompass Paul Glazer’s Glazer Capital, Andrew Weiss’ Weiss Asset Management, and John Bader’s Halcyon Asset Management. We should note that Hudson Bay Capital Management is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

On the next page, we are going to see how the hedge fund sentiment towards Harmony Merger Corp compares with four other companies with similar market caps.
Let’s now take a look at hedge fund activity in other stocks similar to Harmony Merger Corp (NASDAQ:HRMN). These stocks are Stage Stores Inc (NYSE:SSI), Salem Communications Corp (NASDAQ:SALM), Silvercrest Asset Management Group Inc (NASDAQ:SAMG), and Ruby Tuesday, Inc. (NYSE:RT). All of these stocks’ market caps are closest to HRMN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SSI 5 2413 2
SALM 6 8875 0
SAMG 3 10061 -1
RT 15 22773 -1

As you can see these stocks had an average of seven funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $32 million in HRMN’s case. Ruby Tuesday, Inc. (NYSE:RT) is the most popular stock in this table. On the other hand Silvercrest Asset Management Group Inc (NASDAQ:SAMG) is the least popular one with only three bullish hedge fund positions. Harmony Merger Corp (NASDAQ:HRMN) 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 RT might be a better candidate to consider taking a long position in.

Disclosure: none