Medidata Solutions Inc (MDSO): Are Hedge Funds Right About This Stock?

As aggregate interest increased, key money managers have jumped into Medidata Solutions Inc (NASDAQ:MDSO) headfirst. Millennium Management initiated the most valuable call position in Medidata Solutions Inc (NASDAQ:MDSO). Drew Cupps’ Cupps Capital Management also initiated a $2.6 million position during the quarter. The other funds with new positions in the stock are Phil Frohlich’s Prescott Group Capital Management, and Brian Taylor’s Pine River Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Medidata Solutions Inc (NASDAQ:MDSO) but similarly valued. We will take a look at Penske Automotive Group, Inc. (NYSE:PAG), RLJ Lodging Trust (NYSE:RLJ), MB Financial, Inc. (NASDAQ:MBFI), and QTS Realty Trust Inc (NYSE:QTS). All of these stocks’ market caps match MDSO’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $84 million in MDSO’s case. QTS Realty Trust Inc (NYSE:QTS) is the most popular stock in this table. On the other hand RLJ Lodging Trust (NYSE:RLJ) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Medidata Solutions Inc (NASDAQ:MDSO) 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.

Disclosure: None