Is The McClatchy Company (NYSE:MNI) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
The McClatchy Company has seen a decrease in support from the world’s most elite money managers of late. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Tenax Therapeutics Inc (NASDAQ:TENX), KEMET Corporation (NYSE:KEM), and MAM Software Group Inc. (NASDAQ:MAMS) to gather more data points.
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Keeping this in mind, let’s take a look at the key action encompassing The McClatchy Company (NYSE:MNI).
What have hedge funds been doing with The McClatchy Company (NYSE:MNI)?
At Q3’s end, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a change of -23% from the previous quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Royce & Associates, managed by Chuck Royce, holds the largest position in The McClatchy Company (NYSE:MNI). Royce & Associates has a $6 million position in the stock, comprising less than 0.1% of its 13F portfolio. Sitting at the No. 2 spot is Aristeia Capital, managed by Robert Henry Lynch, which holds a $1.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other members of the smart money that are bullish consist of D. E. Shaw’s D E Shaw, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.
Because The McClatchy Company (NYSE:MNI) has faced a declination in interest from the aggregate hedge fund industry, we can see that there is a sect of hedge funds who sold off their positions entirely last quarter. Interestingly, Jim Simons’s Renaissance Technologies cut the largest investment of the 700 funds tracked by Insider Monkey, worth an estimated $0.7 million in stock. William Michaelcheck’s fund, Mariner Investment Group, also dropped its stock, about $0.1 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 3 funds last quarter.
Let’s go over hedge fund activity in other stocks similar to The McClatchy Company (NYSE:MNI). These stocks are Tenax Therapeutics Inc (NASDAQ:TENX), KEMET Corporation (NYSE:KEM), MAM Software Group Inc. (NASDAQ:MAMS), and Pain Therapeutics, Inc. (NASDAQ:PTIE). This group of stocks’ market caps are similar to MNI’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TENX | 9 | 28863 | 3 |
| KEM | 12 | 10579 | 1 |
| MAMS | 4 | 25685 | 2 |
| PTIE | 9 | 23345 | -4 |
As you can see these stocks had an average of 8.5 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $9 million in MNI’s case. KEMET Corporation (NYSE:KEM) is the most popular stock in this table. On the other hand MAM Software Group Inc. (NASDAQ:MAMS) is the least popular one with only 4 bullish hedge fund positions. The McClatchy Company (NYSE:MNI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard KEM might be a better candidate to consider a long position.
