Hedge Funds Are Crazy About Mercury General Corporation (MCY)

As one would reasonably expect, some big names were breaking ground themselves. Dmitry Balyasny’s Balyasny Asset Management assembled the biggest position in Mercury General Corporation (NYSE:MCY). Balyasny Asset Management had $1.1 million invested in the company at the end of the quarter. Michael Platt and William Reeves’s BlueCrest Capital Mgmt. also made a $1.1 million investment in the stock during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors and Mike Vranos’ Ellington.

Let’s now take a look at hedge fund activity in other stocks similar to Mercury General Corporation (NYSE:MCY). We will take a look at AMC Entertainment Holdings Inc (NYSE:AMC), Starz (NASDAQ:STRZA), Cotiviti Holdings Inc(NYSE:COTV), and EnLink Midstream LLC (NYSE:ENLC). This group of stocks’ market values resemble MCY’s market value.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $175 million. That figure was $33 million in MCY’s case. Starz (NASDAQ:STRZA) is the most popular stock in this table. On the other hand Cotiviti Holdings Inc(NYSE:COTV) is the least popular one with only 8 bullish hedge fund positions. Mercury General Corporation (NYSE:MCY) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard STRZA might be a better candidate to consider taking a long position in.

Disclosure: None