Is Infinera Corp. (INFN) Poised for a Rebound?

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As one would reasonably expect, some big names were breaking ground themselves. Renaissance Technologies assembled the biggest position in Infinera Corp. (NASDAQ:INFN). Empyrean Capital Partners also initiated a $5.8 million position during the quarter. The other funds with new positions in the stock are John Petry’s Sessa Capital and Wojciech Uzdelewicz’s Espalier Global Management.

Let’s also examine hedge fund activity in other stocks similar to Infinera Corp. (NASDAQ:INFN). We will take a look at Travelport Worldwide Ltd (NYSE:TVPT), CBL & Associates Properties, Inc. (NYSE:CBL), Aaron’s, Inc. (NYSE:AAN), and Agios Pharmaceuticals Inc (NASDAQ:AGIO). All of these stocks’ market caps are closest to INFN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TVPT 26 465752 -2
CBL 11 30247 -7
AAN 25 288153 0
AGIO 19 219286 8

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $251 million. That figure was $67 million in INFN’s case. Travelport Worldwide Ltd (NYSE:TVPT) is the most popular stock in this table. On the other hand CBL & Associates Properties, Inc. (NYSE:CBL) is the least popular one with only 11 bullish hedge fund positions. Infinera Corp. (NASDAQ:INFN) 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 TVPT might be a better candidate to consider taking a long position in.

Disclosure: None

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