Do Hedge Funds Love Mellanox Technologies, Ltd. (MLNX)?

Seeing as Mellanox Technologies, Ltd. (NASDAQ:MLNX) has faced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few fund managers who sold off their full holdings by the end of the third quarter. Interestingly, Clifford Fox’s Columbus Circle Investors dumped the largest investment of the 700 funds monitored by Insider Monkey, totaling about $48.9 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund said goodbye to about $7.1 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest dropped by 1 fund by the end of the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Mellanox Technologies, Ltd. (NASDAQ:MLNX) but similarly valued. These stocks are Eastgroup Properties Inc (NYSE:EGP), Heartland Express, Inc. (NASDAQ:HTLD), Proto Labs Inc (NYSE:PRLB), and Granite Real Estate Investment Trust (NYSE:GRP). All of these stocks’ market caps are closest to MLNX’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $411 million in MLNX’s case. Eastgroup Properties Inc (NYSE:EGP) is the most popular stock in this table. On the other hand Granite Real Estate Investment Trust (NYSE:GRP) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Mellanox Technologies, Ltd. (NASDAQ:MLNX) is more popular among hedge funds and has attracted a lot more of the their money. 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.