Is Microsemi Corporation (MSCC) A Good Stock To Buy?

Because Microsemi Corporation (NASDAQ:MSCC) has experienced a declination in interest from the entirety of the hedge funds we track, logic holds that there is a sect of funds who were dropping their full holdings heading into Q4. Intriguingly, Alex Sacerdote’s Whale Rock Capital Management said goodbye to the biggest stake of the “upper crust” of funds watched by Insider Monkey, valued at an estimated $17.1 million in stock. George Soros’ fund, Soros Fund Management, also cut its stock, about $9.8 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 9 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Microsemi Corporation (NASDAQ:MSCC) but similarly valued. We will take a look at Whiting Petroleum Corp (NYSE:WLL), Nabors Industries Ltd. (NYSE:NBR), Tallgrass Energy GP LP (NYSE:TEGP), and Healthcare Trust Of America Inc (NYSE:HTA). This group of stocks’ market values resemble MSCC’s market value.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $291 million. That figure was $82 million in MSCC’s case. Whiting Petroleum Corp (NYSE:WLL) is the most popular stock in this table. On the other hand Tallgrass Energy GP LP (NYSE:TEGP) is the least popular one with only 10 bullish hedge fund positions. Microsemi Corporation (NASDAQ:MSCC) 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 WLL might be a better candidate to consider a long position.