Molina Healthcare, Inc. (MOH): Are Hedge Funds Right About This Stock?

As one would reasonably expect, key hedge funds were breaking ground themselves. Hutchin Hill Capital, managed by Neil Chriss, established the most valuable position in Molina Healthcare, Inc. (NYSE:MOH). Hutchin Hill Capital had $6.5 million invested in the company at the end of the quarter. Richard Driehaus’ Driehaus Capital also initiated a $1.8 million position during the quarter. The following funds were also among the new Molina Healthcare, Inc. (NYSE:MOH) investors: George Hall’s Clinton Group, Andy Redleaf’s Whitebox Advisors, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Molina Healthcare, Inc. (NYSE:MOH) but similarly valued. These stocks are AmeriGas Partners, L.P. (NYSE:APU), Burlington Stores Inc (NYSE:BURL), Booz Allen Hamilton Holding Corporation (NYSE:BAH), and Senior Housing Properties Trust (NYSE:SNH). This group of stocks’ market values resembles Molina Healthcare, Inc. (NYSE:MOH)’s market value.

As you can see, these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $248 million. That figure was $444 million in Molina Healthcare, Inc. (NYSE:MOH)’s case. Burlington Stores Inc (NYSE:BURL) is the most popular stock in this table. On the other hand, AmeriGas Partners, L.P. (NYSE:APU) is the least popular one with only 8 bullish hedge fund positions. Molina Healthcare, Inc. (NYSE:MOH) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Burlington Stores Inc (NYSE:BURL) might be a better candidate to consider a long position.