Is Monolithic Power Systems, Inc. (MPWR) A Good Stock To Buy?

Consequently, specific money managers have been driving this bullishness. Citadel Investment Group, managed by Ken Griffin, assembled the most valuable position in Monolithic Power Systems, Inc. (NASDAQ:MPWR). Citadel Investment Group had $1.5 million invested in the company at the end of the quarter. Principal Global Investors’ Columbus Circle Investors also initiated a $1.1 million position during the quarter. The following funds were also among the new MPWR investors: Mike Vranos’ Ellington and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Monolithic Power Systems, Inc. (NASDAQ:MPWR) but similarly valued. These stocks are Graham Holdings Co (NYSE:GHC), Ellie Mae Inc (NYSE:ELLI), Tenet Healthcare Corp (NYSE:THC), and Inovalon Holdings Inc (NASDAQ:INOV). All of these stocks’ market caps resemble MPWR’s market cap.

As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $405 million. That figure was $186 million in MPWR’s case. Tenet Healthcare Corp (NYSE:THC) is the most popular stock in this table. On the other hand Inovalon Holdings Inc (NASDAQ:INOV) is the least popular one with only 4 bullish hedge fund positions. Monolithic Power Systems, Inc. (NASDAQ:MPWR) 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 THC might be a better candidate to consider a long position in.

Disclosure: None