F5 Networks, Inc. (FFIV): Are Hedge Funds Right About This Stock?

Because F5 Networks, Inc. (NASDAQ:FFIV) has faced a declining sentiment from the aggregate hedge fund industry, we can see that there exists a select few hedgies who were dropping their positions entirely in the third quarter. Interestingly, Clint Carlson’s Carlson Capital dumped the largest investment of all the hedgies tracked by Insider Monkey, totaling about $12.3 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund sold off about $7.3 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 3 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as F5 Networks, Inc. (NASDAQ:FFIV) but similarly valued. We will take a look at InterContinental Hotels Group PLC (ADR) (NYSE:IHG), Michael Kors Holdings Ltd (NYSE:KORS), Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ), and Towers Watson & Co (NASDAQ:TW). All of these stocks’ market caps are similar to F5 Networks, Inc. (NASDAQ:FFIV)’s market cap.

As you can see, these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $680 million. That figure was $607 million in F5 Networks, Inc. (NASDAQ:FFIV)’s case. Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ) is the most popular stock in this table. On the other hand, InterContinental Hotels Group PLC (ADR) (NYSE:IHG) is the least popular one with only 12 bullish hedge fund positions. F5 Networks, Inc. (NASDAQ:FFIV) 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, Jazz Pharmaceuticals plc – Ordinary Shares (NASDAQ:JAZZ) might be a better candidate to consider a long position.