Is Intermolecular Inc (IMI) Going to Burn These Hedge Funds?

As industrywide interest jumped, some big names were breaking ground themselves. Millennium Management, managed by Israel Englander, created the most valuable position in Intermolecular Inc (NASDAQ:IMI). Millennium Management had $0 million invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Intermolecular Inc (NASDAQ:IMI) but similarly valued. These stocks are Gastar Exploration Limited (USA) (NYSEAMEX:GST), STG Group Inc (OTCMKTS:GDEF), and GSI Technology, Inc. (NASDAQ:GSIT). All of these stocks’ market caps resemble IMI’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $11 million, which is lower than the $25 million figure in IMI’s case. Global Defense & National Scrty Sys Inc (NASDAQ:SSRG) is the most popular stock in this table. On the other hand GSI Technology, Inc. (NASDAQ:GSIT) is the least popular one with only 5 bullish hedge fund positions. Intermolecular Inc (NASDAQ:IMI) is not the least popular stock in this group, but hedge fund interest is close to the 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 SSRG might be a better candidate to consider a long position.