Is MRC Global Inc (MRC) A Good Stock To Buy?

Page 2 of 2

Judging by the fact that MRC Global Inc (NYSE:MRC) has weathered declining sentiment from the entirety of the hedge funds we track, we can see that there exists a select few fund managers that elected to cut their positions entirely during the third quarter. Intriguingly, Brian Taylor’s Pine River Capital Management said goodbye to the biggest position of all the hedgies followed by Insider Monkey, comprising an estimated $6 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund said goodbye to about $0.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as MRC Global Inc (NYSE:MRC) but similarly valued. These stocks are Simmons First National Corporation (NASDAQ:SFNC), Spark Therapeutics Inc (NASDAQ:ONCE), World Wrestling Entertainment, Inc. (NYSE:WWE), and Chesapeake Lodging Trust (NYSE:CHSP). This group of stocks’ market valuations match MRC’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SFNC 6 9290 0
ONCE 13 194892 -3
WWE 13 141372 3
CHSP 9 16402 0

As you can see these stocks had an average of 10 funds with bullish positions and the average amount invested in these stocks was $90 million. That figure was $231 million in MRC’s case. Spark Therapeutics Inc (NASDAQ:ONCE) is the most popular stock in this table. On the other hand Simmons First National Corporation (NASDAQ:SFNC) is the least popular one with only six investors holding shares. Compared to these stocks MRC Global Inc (NYSE:MRC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Page 2 of 2