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Is MannKind Corporation (MNKD) Going to Burn These Hedge Funds?

Does MannKind Corporation (NASDAQ:MNKD) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.

MannKind Corporation (NASDAQ:MNKD) was in 11 hedge funds’ portfolios at the end of the third quarter of 2015. MNKD has experienced a decrease in support from the world’s most elite money managers lately. There were 13 hedge funds in our database with MNKD 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 G&K Services Inc (NASDAQ:GK), Main Street Capital Corporation (NYSE:MAIN), and Teekay Offshore Partners L.P. (NYSE:TOO) to gather more data points.

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To the average investor, there are dozens of methods investors use to analyze their stock investments. A duo of the less known methods are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the best money managers can outperform the S&P 500 by a significant margin (see the details here).

Keeping this in mind, let’s take a peek at the key action regarding MannKind Corporation (NASDAQ:MNKD).

How have hedgies been trading MannKind Corporation (NASDAQ:MNKD)?

Heading into Q4, a total of 11 of the hedge funds tracked by Insider Monkey were long this stock, a change of -15% from the previous quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Greywolf Capital Management, managed by Jonathan Savitz, holds the number one position in MannKind Corporation (NASDAQ:MNKD). Greywolf Capital Management has a $29.1 million position in the stock, comprising 4.8% of its 13F portfolio. Coming in second is Sabby Capital, led by Hal Mintz, holding a $9.9 million call position; 0.4% of its 13F portfolio is allocated to the stock. Remaining professional money managers with similar optimism encompass Ken Griffin’s Citadel Investment Group, Daniel S. Och’s OZ Management and Murray Stahl’s Horizon Asset Management.

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