MVC Capital, Inc. (MVC): Are Hedge Funds Right About This Stock?

MVC Capital, Inc. (NYSE:MVC) was in 10 hedge funds’ portfolio at the end of March. MVC shareholders have witnessed a decrease in enthusiasm from smart money lately. There were 11 hedge funds in our database with MVC holdings at the end of the previous quarter.

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With these “truths” under our belt, let’s take a peek at the recent action regarding MVC Capital, Inc. (NYSE:MVC).

What have hedge funds been doing with MVC Capital, Inc. (NYSE:MVC)?

At Q1’s end, a total of 10 of the hedge funds we track were long in this stock, a change of -9% from the first quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings considerably.

MVC Capital, Inc. (NYSE:MVC)When looking at the hedgies we track, Nelson Obus’s Wynnefield Capital had the largest position in MVC Capital, Inc. (NYSE:MVC), worth close to $23.9 million, comprising 8.1% of its total 13F portfolio. Coming in second is Royce & Associates, managed by Chuck Royce, which held a $14.5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers with similar optimism include Roger Keith Long’s Otter Creek Management, Joseph A. Jolson’s Harvest Capital Strategies and Michael Price’s MFP Investors.

Seeing as MVC Capital, Inc. (NYSE:MVC) has witnessed falling interest from the aggregate hedge fund industry, we can see that there was a specific group of hedge funds that elected to cut their entire stakes at the end of the first quarter. At the top of the heap, William Michaelcheck’s Mariner Investment Group dropped the biggest stake of the “upper crust” of funds we watch, valued at an estimated $0.4 million in stock. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 1 funds at the end of the first quarter.

Insider trading activity in MVC Capital, Inc. (NYSE:MVC)

Insider buying is particularly usable when the company we’re looking at has seen transactions within the past 180 days. Over the latest half-year time period, MVC Capital, Inc. (NYSE:MVC) has seen 4 unique insiders buying, and 1 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to MVC Capital, Inc. (NYSE:MVC). These stocks are Gladstone Investment Corporation (NASDAQ:GAIN), North European Oil Royalty (NYSE:NRT), KCAP Financial Inc (NASDAQ:KCAP), INTL Fcstone Inc (NASDAQ:INTL), and Mesabi Trust (NYSE:MSB). This group of stocks are in the diversified investments industry and their market caps match MVC’s market cap.