Are Investors Right to Be Bullish On Rovi Corporation (ROVI)?

Now, specific money managers have been driving this bullishness. Point72 Asset Management, family office managed by Steve Cohen, initiated the biggest position in Rovi Corporation (NASDAQ:ROVI). The fund had $3.3 million invested in the company at the end of the quarter. Wojciech Uzdelewicz’s Espalier Global Management also made a $2 million investment in the stock during the quarter. The following funds were also among the new ROVI investors: Michael Pollack’s Destrier Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s now take a look at the hedge fund activity in other stocks – not necessarily in the same industry as Rovi Corporation (NASDAQ:ROVI) but similarly valued. We will take a look at Dominion Diamond Corp (NYSE:DDC), New Senior Investment Group Inc (NYSE:SNR), Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE), and HeartWare International Inc (NASDAQ:HTWR). This group of stocks’ market values is similar to Rovi Corporation (NASDAQ:ROVI)’s market value.

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $141 million, with HeartWare International Inc (NASDAQ:HTWR) attracting the largest number of investments, while Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE) attracting the least. Compared to these stocks, Rovi Corporation (NASDAQ:ROVI) is more popular among hedge funds, bagging investments worth $96 million. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.