Fabrinet (FN) Attracting A Lot of Smart Money Attention

As one would reasonably expect, some big names have jumped into Fabrinet (NYSE:FN) headfirst. Marshall Wace LLP created the most valuable position in Fabrinet (NYSE:FN). Marshall Wace LLP had $9.5 million invested in the company at the end of the quarter. Leon Cooperman’s Omega Advisors also made a $2.3 million investment in the stock during the quarter. The following funds were also among the new FN investors: George Soros’ family office Soros Fund Management, John Overdeck and David Siegel’s Two Sigma Advisors, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Fabrinet (NYSE:FN) but similarly valued. We will take a look at WL Ross Holding Corp (NASDAQ:WLRH), Array Biopharma Inc (NASDAQ:ARRY), William Lyon Homes (NYSE:WLH), and Washington Trust Bancorp (NASDAQ:WASH). This group of stocks’ market valuations are similar to FN’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $183 million. That figure was $115 million in FN’s case. Array Biopharma Inc (NASDAQ:ARRY) is the most popular stock in this table. On the other hand Washington Trust Bancorp (NASDAQ:WASH) is the least popular one with only 5 bullish hedge fund positions. Fabrinet (NYSE:FN) is not the most popular stock in this group but hedge fund interest is still above average and rising. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are also pumping a lot of money into. In this regard ARRY and WLH might be better candidates to consider long positions in.