Hedge Fund Sentiment Is Stagnant On Flextronics International Ltd. (FLEX)

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Seeing as Flextronics International Ltd. (NASDAQ:FLEX) has faced bearish sentiment from the aggregate hedge fund industry, we can see that there is a sect of money managers who sold off their positions entirely by the end of the third quarter. Interestingly, Charles Jobson’s Delta Partners cut the biggest stake of the 700 funds tracked by Insider Monkey, totaling close to $20.7 million in call options, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund dropped about $5.7 million worth of stock. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Flextronics International Ltd. (NASDAQ:FLEX) but similarly valued. These stocks are Xylem Inc (NYSE:XYL), SVB Financial Group (NASDAQ:SIVB), Macquarie Infrastructure Company LLC (NYSE:MIC), and Domino’s Pizza, Inc. (NYSE:DPZ). All of these stocks’ market caps are closest to FLEX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
XYL 23 488496 -5
SIVB 34 454373 4
MIC 69 1479032 0
DPZ 28 1024237 5

As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $862 million. That figure was $1.27 billion in FLEX’s case. Macquarie Infrastructure Company LLC (NYSE:MIC) is the most popular stock in this table. On the other hand Xylem Inc (NYSE:XYL) is the least popular one with only 23 bullish hedge fund positions. Flextronics International Ltd. (NASDAQ:FLEX) 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 MIC might be a better candidate to consider a long position.

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