Do Hedge Funds Love ScanSource, Inc. (SCSC)?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. Interestingly, Millennium Management, one of the biggest hedge funds in the world, said goodbye to the largest stake of the “upper crust” of funds tracked by Insider Monkey, worth about $4.2 million in stock. Neil Chriss’s fund, Hutchin Hill Capital, also said goodbye to its stock, about $1.2 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as ScanSource, Inc. (NASDAQ:SCSC) but similarly valued. These stocks are Brooks Automation, Inc. (USA) (NASDAQ:BRKS), HudBay Minerals Inc Ord Shs (NYSE:HBM), Himax Technologies, Inc. (ADR) (NASDAQ:HIMX), and ADTRAN, Inc. (NASDAQ:ADTN). This group of stocks’ market values resemble SCSC’s market value.

As you can see these stocks had an average of 14.75 hedge funds with bullish positions and the average amount invested in these stocks was $93 million. That figure was $68 million in SCSC’s case. Himax Technologies, Inc. (ADR) (NASDAQ:HIMX) is the most popular stock in this table. On the other hand HudBay Minerals Inc Ord Shs (NYSE:HBM) is the least popular one with only 9 bullish hedge fund positions. ScanSource, Inc. (NASDAQ:SCSC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HIMX might be a better candidate to consider taking a long position in.

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Disclosure: None