Published on 26 Oct 2021 on Insider Monkey via Yahoo Finance

Should I Avoid Houghton Mifflin Harcourt Co (HMHC)?

In this article we will check out the progression of hedge fund sentiment towards Houghton Mifflin Harcourt Co (NASDAQ:HMHC) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also employ numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.

Is Houghton Mifflin Harcourt Co (NASDAQ:HMHC) undervalued? The smart money was taking a bearish view. The number of bullish hedge fund bets dropped by 4 lately. Houghton Mifflin Harcourt Co (NASDAQ:HMHC) was in 21 hedge funds' portfolios at the end of June. The all time high for this statistic is 37. Our calculations also showed that HMHC isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In the eyes of most stock holders, hedge funds are viewed as unimportant, outdated investment vehicles of the past. While there are over 8000 funds trading at the moment, Our researchers look at the bigwigs of this club, about 850 funds. These investment experts command most of the hedge fund industry's total capital, and by shadowing their inimitable picks, Insider Monkey has identified many investment strategies that have historically outperformed the S&P 500 index. Insider Monkey's flagship short hedge fund strategy beat the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Also, our monthly newsletter's portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.