Hedge Fund Trade Spotlight: $MNK

$MNK has suffered sharp decline since last July's dramatic crash, it lost 50%+ in a year. But since then it has been stabilized around $60 (See stock chart).

Has $MNK turned corner yet? Nobody can really know with stock market. If you or I know, then I wouldn't be writing this post.smile emoticonIn fact even the smartest investors like billionaire hedge fund managers, John Paulson, Phil Gross, both holders of $MNK, would dare to say they knew today. But it doesn't prevent us from doing some analysis of hedge funds trading behaviors of this stock.

There are positive signs emerging from the latest 13F filings of hedge funds. For those who are not familiar with what it is 13F, in one sentence, it is a SEC filing requirement for all institutional investors with $100 mln Asset Under Management to disclose their US equity assets at the end of each quarter. Note it is for their long position only and it should be done 45 days after the end of quarter.

What are positive signs we saw in Q1 filings by the hedge funds? Overall they seemed to like it by adding more shares. 8 of Top 10 holders all increased their stakes or initiated new stakes. (see HM infographic). While hedge funds sentiment reading is just neutral, it doesn't take away the strong bullish sentiment among the top holders who seem to be more confident than the bears. Even more notable buyer is Arthur Cohen of Healtcor, a healthcare focused tiger cub, who raised his stake by 690% to now significant 1.72mln sh from initial 249k in Q4. $MNK is now a top 10 holding of Cohen's $1.76bln portfolio and has 6% portfolio weight.

As of end of Q1, HedgeMind Hedge Funds owns 15.87% total shares outstanding while all institutional investors total 95.09%.

For anyone who is interested in $MNK, long or short or just watching, these signs are worth to take notice. 

IMPORTANT: Note this post is neither fundamental or technical analysis of $MNK. It is an analysis of hedge fund holdings.