We know that hedge funds generate strong, risk-adjusted returns over the long run, therefore imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, smart money investors have to conduct complex analyses, spend many resources and use tools that are not always available for the general crowd. This doesn’t mean that they don’t have occasional colossal losses; they do (like Peltz’s recent General Electric losses). However, it is still good idea to keep an eye on hedge fund activity. With this in mind, as the current round of 13F filings has just ended, let’s examine the smart money sentiment towards Mistras Group, Inc. (NYSE:MG).
Mistras Group, Inc. (NYSE:MG) was in 13 hedge funds’ portfolios at the end of the third quarter of 2018. MG has experienced an increase in enthusiasm from smart money of late. There were 9 hedge funds in our database with MG positions at the end of the previous quarter. Our calculations also showed that MG isn’t among the 30 most popular stocks among hedge funds.
Today there are several formulas stock traders have at their disposal to assess their stock investments. A couple of the most underrated formulas are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the best picks of the best fund managers can outpace the market by a superb margin (see the details here).
We’re going to check out the key hedge fund action surrounding Mistras Group, Inc. (NYSE:MG).
How have hedgies been trading Mistras Group, Inc. (NYSE:MG)?
At Q3’s end, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 44% from the previous quarter. The graph below displays the number of hedge funds with bullish position in MG over the last 13 quarters. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
More specifically, Rutabaga Capital Management was the largest shareholder of Mistras Group, Inc. (NYSE:MG), with a stake worth $15.6 million reported as of the end of September. Trailing Rutabaga Capital Management was Renaissance Technologies, which amassed a stake valued at $8.3 million. D E Shaw, Millennium Management, and Engine Capital were also very fond of the stock, giving the stock large weights in their portfolios.
With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. Laurion Capital Management, managed by Benjamin A. Smith, assembled the most valuable position in Mistras Group, Inc. (NYSE:MG). Laurion Capital Management had $3 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $1.2 million position during the quarter. The other funds with new positions in the stock are Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.
Let’s now take a look at hedge fund activity in other stocks similar to Mistras Group, Inc. (NYSE:MG). We will take a look at Nuveen California AMT-Free Quality Municipal Income Fund (NYSE:NKX), ProQR Therapeutics NV (NASDAQ:PRQR), RYB Education, Inc. (NYSE:RYB), and Sabine Royalty Trust (NYSE:SBR). This group of stocks’ market caps are closest to MG’s market cap.