Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Should You Avoid The Hanover Insurance Group Inc (THG)?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP dropped the biggest stake of the “upper crust” of funds tracked by Insider Monkey, worth close to $1.6 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also dropped its stock, about $0.5 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as The Hanover Insurance Group Inc (NYSE:THG) but similarly valued. These stocks are SINA Corp (NASDAQ:SINA), Medical Properties Trust, Inc. (NYSE:MPW), Tribune Media Co (NYSE:TRCO), and Euronet Worldwide, Inc. (NASDAQ:EEFT). All of these stocks’ market caps resemble THG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SINA 33 796653 12
MPW 23 211104 11
TRCO 25 1258033 2
EEFT 22 233336 -6

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $625 million. That figure was $172 million in THG’s case. SINA Corp (NASDAQ:SINA) is the most popular stock in this table. On the other hand Euronet Worldwide, Inc. (NASDAQ:EEFT) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks The Hanover Insurance Group Inc (NYSE:THG) is even less popular than EEFT. 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.

Disclosure: None

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...