Nam Tai Property Inc (NTP): Are Hedge Funds Right About This Stock?

As aggregate interest increased, key money managers were breaking ground themselves. Prescott Group Capital Management, led by Phil Frohlich, initiated the most outsized position in Nam Tai Property Inc (NYSE:NTP). Prescott Group Capital Management had $0.4 million invested in the company at the end of the quarter. Millennium Management , one of the 10 largest hedge funds in the world, also initiated a $0.2 million position during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s go over hedge fund activity in other stocks similar to Nam Tai Property Inc (NYSE:NTP). We will take a look at Digi International Inc. (NASDAQ:DGII), Paratek Pharmaceuticals Inc (NASDAQ:PRTK), MannKind Corporation (NASDAQ:MNKD), and IntelSat SA (NYSE:I). This group of stocks’ market caps resemble NTP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DGII 15 21063 -1
PRTK 17 63710 -4
MNKD 7 5336 1
I 15 92302 1

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $46 million. That figure was $30 million in NTP’s case. Paratek Pharmaceuticals Inc (NASDAQ:PRTK) is the most popular stock in this table. On the other hand MannKind Corporation (NASDAQ:MNKD) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Nam Tai Property Inc (NYSE:NTP) is even less popular than MNKD. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: None