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Is MFA Financial, Inc. (MFA) A Good Stock To Buy?

Consequently, key hedge funds have jumped into MFA Financial, Inc. (NYSE:MFA) headfirst. Clough Capital Partners, managed by Charles Clough, assembled the most valuable position in MFA Financial, Inc. (NYSE:MFA). Clough Capital Partners had $2.4 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $2 million investment in the stock during the quarter. The following funds were also among the new MFA investors: Michael Platt and William Reeves’s BlueCrest Capital Mgmt., Jacob Gottlieb’s Visium Asset Management, and David Costen Haley’s HBK Investments.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as MFA Financial, Inc. (NYSE:MFA) but similarly valued. These stocks are Sunoco LP (NYSE:SUN), Golar LNG Limited (USA) (NASDAQ:GLNG), The Wendy’s Company (NASDAQ:WEN), and Avolon Holdings Ltd (NYSE:AVOL). This group of stocks’ market valuations resemble MFA’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SUN 10 57436 0
GLNG 39 682454 -5
WEN 26 632213 -12
AVOL 12 185412 -3

As you can see these stocks had an average of 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $389 million. That figure was $52 million in MFA’s case. Golar LNG Limited (USA) (NASDAQ:GLNG) is the most popular stock in this table. On the other hand Sunoco LP (NYSE:SUN) is the least popular one with only 10 bullish hedge fund positions. MFA Financial, Inc. (NYSE:MFA) 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 GLNG might be a better candidate to consider a long position.

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