Does LeapFrog Enterprises, Inc. (LF) represent a good investment?

Judging by the fact that LeapFrog Enterprises, Inc. (NYSE:LF) has experienced falling interest from the entirety of the hedge funds we track, we can see that there exist a select few funds that decided to sell off their full holdings by the end of the third quarter. It’s worth mentioning that Cliff Asness’s AQR Capital Management dropped the biggest stake of the “upper crust” of funds followed by Insider Monkey, comprising an estimated $0.9 million in stock, and Ben Levine, Andrew Manuel and Stefan Renold of LMR Partners was right behind this move, as the fund said goodbye to about $0.1 million worth. These transactions are interesting, as total hedge fund interest was cut by 5 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to LeapFrog Enterprises, Inc. (NYSE:LF). We will take a look at Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP), SFX Entertainment Inc (NASDAQ:SFXE), Orion Energy Systems, Inc. (NYSEAMEX:OESX), and Aeropostale, Inc. (NYSE:ARO). This group of stocks’ market values resemble LF’s market value.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $5 million in LF’s case. The least popular stock in the table is Corbus Pharmaceuticals Holdings Inc (NASDAQ:CRBP), and the most popular one is SFX Entertainment Inc (NASDAQ:SFXE). Even though it is not the most popular stock among the ones in this group, LeapFrog Enterprises, Inc. (NYSE:LF) has succeeded in attracting attention from investors. Although this may indicate a good potential, it might be better to look into stocks that hedge funds are collectively most bullish on, such as SFX Entertainment Inc (NASDAQ:SFXE) that might represent a better candidate to consider a long position.