Do Hedge Funds Love Electronics For Imaging, Inc. (EFII)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dumped their entire stakes in the stock during the third quarter. Interestingly, John Orrico’s Water Island Capital dumped the biggest investment of the 700 funds followed by Insider Monkey, totaling about $3.4 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its call options, about $0.2 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Electronics For Imaging, Inc. (NASDAQ:EFII) but similarly valued. These stocks are Paylocity Holding Corp (NASDAQ:PCTY), M/A-COM Technology Solutions Holdings (NASDAQ:MTSI), Matador Resources Co (NYSE:MTDR), and ACI Worldwide Inc (NASDAQ:ACIW). This group of stocks’ market valuations are closest to EFII’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $88 million. That figure was $158 million in EFII’s case. M/A-COM Technology Solutions Holdings (NASDAQ:MTSI) is the most popular stock in this table. On the other hand ACI Worldwide Inc (NASDAQ:ACIW) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Electronics For Imaging, Inc. (NASDAQ:EFII) is even less popular than ACIW. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None