Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Matthews International Corp (MATW): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Gotham Asset Management, managed by Joel Greenblatt, assembled the most outsized position in Matthews International Corp (NASDAQ:MATW). Gotham Asset Management had $7.6 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also initiated a $0.4 million position during the quarter. The only other fund with a brand new MATW position is D. E. Shaw’s D E Shaw.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Matthews International Corp (NASDAQ:MATW) but similarly valued. We will take a look at Inc (NASDAQ:SOHU), Celestica Inc. (USA) (NYSE:CLS), Old National Bancorp (NYSE:ONB), and KapStone Paper and Packaging Corp. (NYSE:KS). All of these stocks’ market caps match MATW’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SOHU 17 436859 -6
CLS 12 16772 -5
ONB 8 22015 0
KS 24 157560 0

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $158 million, while in MATW’s case that figure amounts to $73 million. KapStone Paper and Packaging Corp. (NYSE:KS) is the most popular stock in this table. On the other hand, Old National Bancorp (NYSE:ONB) is the least popular one with only 8 bullish hedge fund positions. Matthews International Corp (NASDAQ:MATW) 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, such as KS, in this particular case.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.