Here is What Hedge Funds Think About The Marcus Corporation (MCS)

The Marcus Corporation (NYSE:MCS) was in 7 hedge funds’ portfolio at the end of December. MCS investors should be aware of an increase in enthusiasm from smart money in recent months. There were 6 hedge funds in our database with MCS positions at the end of the previous quarter.

In today’s marketplace, there are tons of metrics investors can use to watch Mr. Market. A duo of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top money managers can outclass their index-focused peers by a very impressive margin (see just how much).

Equally as key, bullish insider trading sentiment is a second way to break down the financial markets. There are lots of incentives for an insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the valuable potential of this strategy if “monkeys” understand what to do (learn more here).

Consequently, we’re going to take a gander at the recent action surrounding The Marcus Corporation (NYSE:MCS).

What have hedge funds been doing with The Marcus Corporation (NYSE:MCS)?

At the end of the fourth quarter, a total of 7 of the hedge funds we track held long positions in this stock, a change of 17% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings substantially.

According to our comprehensive database, Private Capital Management, managed by Gregg J. Powers, holds the biggest position in The Marcus Corporation (NYSE:MCS). Private Capital Management has a $11.5 million position in the stock, comprising 1.1% of its 13F portfolio. On Private Capital Management’s heels is GAMCO Investors, managed by Mario Gabelli, which held a $8.5 million position; 0.1% of its 13F portfolio is allocated to the company. Some other hedgies that hold long positions include Ken Griffin’s Citadel Investment Group, Ken Gray and Steve Walsh’s Bryn Mawr Capital and Israel Englander’s Millennium Management.

Now, specific money managers have been driving this bullishness. Bryn Mawr Capital, managed by Ken Gray and Steve Walsh, initiated the largest position in The Marcus Corporation (NYSE:MCS). Bryn Mawr Capital had 0.4 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.1 million investment in the stock during the quarter.

How have insiders been trading The Marcus Corporation (NYSE:MCS)?

Insider purchases made by high-level executives is at its handiest when the company we’re looking at has seen transactions within the past 180 days. Over the last half-year time period, The Marcus Corporation (NYSE:MCS) has experienced zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

Let’s go over hedge fund and insider activity in other stocks similar to The Marcus Corporation (NYSE:MCS). These stocks are Pinnacle Entertainment, Inc (NYSE:PNK), Monarch Casino & Resort, Inc. (NASDAQ:MCRI), Boyd Gaming Corporation (NYSE:BYD), Isle of Capri Casinos (NASDAQ:ISLE), and Bluegreen Corporation (NYSE:BXG). All of these stocks are in the resorts & casinos industry and their market caps are closest to MCS’s market cap.

With the results shown by our tactics, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and The Marcus Corporation (NYSE:MCS) shareholders fit into this picture quite nicely.

Click here to learn why you should track hedge funds