Is M.D.C. Holdings, Inc. (MDC) Going to Burn These Hedge Funds?

Due to the fact that M.D.C. Holdings, Inc. (NYSE:MDC) has faced declining sentiment from hedge fund managers, it’s easy to see that there is a sect of fund managers that elected to cut their positions entirely heading into Q4. At the top of the heap, Neil Chriss’s Hutchin Hill Capital sold off the largest position of the 700 funds watched by Insider Monkey, comprising an estimated $3.3 million in stock, and Alec Litowitz and Ross Laser’s Magnetar Capital was right behind this move, as the fund sold off about $0.5 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 4 funds heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as M.D.C. Holdings, Inc. (NYSE:MDC) but similarly valued. We will take a look at Provident Financial Services, Inc. (NYSE:PFS), First Interstate Bancsystem Inc (NASDAQ:FIBK), Columbia Pipeline Partners LP (NYSE:CPPL), and MasTec, Inc. (NYSE:MTZ). This group of stocks’ market caps resemble MDC’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $67 million in MDC’s case. MasTec, Inc. (NYSE:MTZ) is the most popular stock in this table. On the other hand Columbia Pipeline Partners LP (NYSE:CPPL) is the least popular one with only 4 bullish hedge fund positions. M.D.C. Holdings, Inc. (NYSE:MDC) is not the least popular stock in this group, but still has not attracted much attention from investors. This is a slightly negative signal, and we’d rather spend our time researching stocks that that hedge funds are collectively most bullish on. In this case,, MTZ might be a better candidate to consider a long position.