Want to Invest Like a Hedge Fund? Have a Look at These 3 Stocks Favored by Top Money Managers

In another 13G filing with the SEC, Glenn J. Krevlin’s Glenhill Advisors disclosed owning 553,422 shares in MicroStrategy Incorporated (NASDAQ:MSTR), representing 5.9% of the company’s outstanding shares. This compares to the 354,578-share stake revealed through the hedge fund’s 13F filing for the three-month period that ended June 30. At the end of October, the provider of enterprise software platforms released mixed third-quarter financial results, which have put some weight on the stock. The company reported a lower-than-expected top-line, but managed to deliver stronger-than-expected earnings, thanks to its cost cutting efforts (read more details). However, MicroStrategy Incorporated (NASDAQ:MSTR) has been having a hard time boosting up its revenues over the past few years, so investors might have started to believe that the company’s cost cutting measures do not represent a sustainable growth strategy over the long-term spectrum.

The number of hedge funds with positions in the company remained unchanged during the second quarter at 28, whereas the value of these positions decreased to $464.83 million from $490.06 million quarter-over-quarter. Even so, these hedge funds accumulated slightly more than 24% of the company’s shares on June 30. It is also appears that the stock is fairly valued at the moment, considering the fierce competition within the enterprise analytics market; the stock is trading at a forward P/E ratio of 21.22, compared to a median of 17.65 for the S&P 500 Index. Ricky Sandler’s Eminence Capital was the top shareholder of MicroStrategy Incorporated (NASDAQ:MSTR) within our database at the end of the June quarter, holding roughly 889,000 shares.

Brian Taylor’s Pine River Capital Management L.P. recently filed a 13D filing with the SEC, disclosing an ownership stake of 3.14 million shares or 9.1% in Morgans Hotel Group Co. (NASDAQ:MHGC). The investment firm did not change its ownership stake, but did change its stance from passive to active. On November 4, the integrated lifestyle hospitality company appointed Adam Stein, who also serves as an employee of Pine River Capital Management, to its Board of Directors following the resignation of John Brecker. In mid-September, real estate investment firm Rambleside Holdings offered to buy Morgans Hotel Group Co. (NASDAQ:MHGC)’s lodging properties in an all-cash deal estimated at $507 million. Let us remind you that Morgans has been in advanced merger discussions with Sam Nazarian’s SBE Entertainment Group. However, a recent article published by The Wall Street Journal says that the negotiations between the two parties had broken down.

The hedge fund sentiment on the stock did not change during the second quarter, with the number of hedge funds invested in the company staying intact at 20. Nevertheless, the value of the money poured into the stock declined to $59.36 million from $70.19 million quarter-on-quarter. These 20 money managers stockpiled 25.60% of the company’s shares at the end of June. Let’s not forget to mention that the shares of the lifestyle hospitality company have lost 50% since the beginning of the year. Steve Tannenbaum’s Greenwood Investments held a 1.23 million-share stake in Morgans Hotel Group Co. (NASDAQ:MHGC) at the end of the June quarter.

Disclosure: None