MGIC Investment Corp. (MTG) Tops Wall Streets’ Earnings Expectations, Shares Dip

How are hedge funds trading MGIC Investment Corp. (NYSE:MTG)?

Heading into the second quarter, a total of 54 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of three investors from the previous quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were upping their stakes substantially.

According to hedge fund experts at Insider Monkey, John Griffin‘s Blue Ridge Capital had the biggest position in MGIC Investment Corp. (NYSE:MTG), worth close to $143.49 million from 14.90 million shares, amounting to 1.1% of its total 13F portfolio. The second-most bullish hedge fund managers are Doug Silverman and Alexander Klabin of Senator Investment Group, with a $138.76 million position of 14.41 million shares; the fund has 1.6% of its 13F portfolio invested in the stock. Other hedgies with similar optimism encompass Lee Ainslie‘s Maverick Capital, and John Paulson’s Paulson & Co.

Due to the fact that MGIC Investment Corp. (NYSE:MTG) has witnessed bearish sentiment from hedge fund managers, logic holds that there lies a certain “tier” of fund managers who sold off their positions entirely during the first quarter. It’s worth mentioning that John Khoury’s Long Pond Capital dropped the biggest stake of the more than 700 funds monitored by Insider Monkey, worth close to $35.2 million in stock. Louis Bacon’s fund, Moore Global Investments, also cut its stock, about $32.2 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by three funds at the end of the first quarter.

With positive second quarter financial results and bullish outlook from insiders, we recommend a buy for the shares of MGIC Investment Corp. (NYSE:MTG).

Disclosure: None