Hedge Funds Are Betting On Alliance Fiber Optic Products Inc (AFOP)

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As aggregate interest increased, some big names have jumped into Alliance Fiber Optic Products Inc (NASDAQ:AFOP) headfirst. Algert Coldiron Investors created the most valuable position in Alliance Fiber Optic Products Inc (NASDAQ:AFOP). Algert Coldiron Investors had $2 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also made a $0.2 million investment in the stock during the quarter. The only other fund with a new position in the stock is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Alliance Fiber Optic Products Inc (NASDAQ:AFOP). We will take a look at Checkpoint Systems, Inc. (NYSE:CKP), Carbonite Inc (NASDAQ:CARB), Park Sterling Bank (NASDAQ:PSTB), and Axcelis Technologies Inc (NASDAQ:ACLS). This group of stocks’ market values match AFOP’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CKP 15 27475 -2
CARB 19 83817 1
PSTB 12 36595 4
ACLS 22 41854 3

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $47 million, compared to $20 million in AFOP’s case. Axcelis Technologies Inc (NASDAQ:ACLS) is the most popular stock in this table, while Park Sterling Bank (NASDAQ:PSTB) is the least popular one with only 12 bullish hedge fund positions. Alliance Fiber Optic Products Inc (NASDAQ:AFOP) 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 ACLS might be a better candidate to consider a long position.

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