Is Milacron Holdings Corp (MCRN) Going To Burn Investors?

Since Milacron Holdings Corp (NYSE:MCRN) has experienced a decline in interest from hedge fund managers, logic holds that there is a sect of fund managers who sold off their positions entirely last quarter. It’s worth mentioning that Jim Simons’ Renaissance Technologies cashed in the biggest stake of all the hedgies tracked by Insider Monkey, comprising about $0.2 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dumped about $0.2 million worth of shares itself.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Milacron Holdings Corp (NYSE:MCRN) but similarly valued. We will take a look at Kraton Performance Polymers Inc (NYSE:KRA), Interface, Inc. (NASDAQ:TILE), TPG Specialty Lending Inc (NYSE:TSLX), and The Spectranetics Corporation (NASDAQ:SPNC). This group of stocks’ market values are closest to MCRN’s market value.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $130 million. That figure was $75 million in MCRN’s case. Kraton Performance Polymers Inc (NYSE:KRA) is the most popular stock in this table. On the other hand TPG Specialty Lending Inc (NYSE:TSLX) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Milacron Holdings Corp (NYSE:MCRN) is only as popular as TSLX. 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.

Disclosure: None