Hedge Funds Are Betting On MDC Partners Inc. (USA) (MDCA)

In today’s marketplace, there are plenty of metrics market participants can use to monitor their holdings. A pair of the most underrated are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the top fund managers can trounce the broader indices by a superb margin (see just how much).

Just as necessary, optimistic insider trading sentiment is another way to look at the investments you’re interested in. Just as you’d expect, there are plenty of stimuli for a bullish insider to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of academic studies have demonstrated the valuable potential of this method if “monkeys” know where to look (learn more here).

Thus, let’s study the newest info surrounding MDC Partners Inc. (USA) (NASDAQ:MDCA).

What does the smart money think about MDC Partners Inc. (USA) (NASDAQ:MDCA)?

In preparation for the third quarter, a total of 10 of the hedge funds we track held long positions in this stock, a change of 67% from one quarter earlier. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes substantially.

When using filings from the hedgies we track, Amy Minella’s Cardinal Capital had the largest position in MDC Partners Inc. (USA) (NASDAQ:MDCA), worth close to $28.3 million, comprising 1.8% of its total 13F portfolio. The second largest stake is held by Thomas E. Claugus of GMT Capital, with a $12 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining hedgies that hold long positions include Jonathan Kolatch’s Redwood Capital Management, Jim Simons’s Renaissance Technologies and D. E. Shaw’s D E Shaw.

Now, specific money managers were leading the bulls’ herd. Cardinal Capital, managed by Amy Minella, established the most outsized position in MDC Partners Inc. (USA) (NASDAQ:MDCA). Cardinal Capital had 28.3 million invested in the company at the end of the quarter. Thomas E. Claugus’s GMT Capital also initiated a $12 million position during the quarter. The other funds with brand new MDCA positions are Jonathan Kolatch’s Redwood Capital Management, Jim Simons’s Renaissance Technologies, and D. E. Shaw’s D E Shaw.

How are insiders trading MDC Partners Inc. (USA) (NASDAQ:MDCA)?

Insider buying made by high-level executives is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last half-year time period, MDC Partners Inc. (USA) (NASDAQ:MDCA) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

We’ll also take a look at the relationship between both of these indicators in other stocks similar to MDC Partners Inc. (USA) (NASDAQ:MDCA). These stocks are Valassis Communications, Inc. (NYSE:VCI), National CineMedia, Inc. (NASDAQ:NCMI), Constant Contact Inc (NASDAQ:CTCT), Harte-Hanks, Inc. (NYSE:HHS), and Millennial Media, Inc. (NYSE:MM). This group of stocks are in the marketing services industry and their market caps are similar to MDCA’s market cap.

Using the returns explained by our research, average investors must always pay attention to hedge fund and insider trading sentiment, and MDC Partners Inc. (USA) (NASDAQ:MDCA) is an important part of this process.

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