Is NetScout Systems, Inc. (NTCT) A Good Stock To Buy?

Intriguingly, Robert Henry Lynch’s Aristeia Capital dropped the largest stake of the 700 funds tracked by Insider Monkey, worth an estimated $80.9 million in call options, and Robert Henry Lynch’s Aristeia Capital was right behind this move, as the fund cut about $29.9 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as NetScout Systems, Inc. (NASDAQ:NTCT) but similarly valued. We will take a look at CNO Financial Group Inc (NYSE:CNO), Qunar Cayman Islands Ltd (NASDAQ:QUNR), Berry Plastics Group Inc (NYSE:BERY), and Autohome Inc (ADR) (NYSE:ATHM). All of these stocks’ market caps match NTCT’s market cap.

As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $681 million. That figure was $412 million in NTCT’s case. Berry Plastics Group Inc (NYSE:BERY) is the most popular stock in this table. On the other hand CNO Financial Group Inc (NYSE:CNO) is the least popular one with only 8 bullish hedge fund positions. NetScout Systems, Inc. (NASDAQ:NTCT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BERY might be a better candidate to consider a long position.