Maxim Integrated Products Inc. (MXIM): Are Hedge Funds Right About This Stock?

Due to the fact that Maxim Integrated Products Inc. (NASDAQ:MXIM) has faced a declination in interest from hedge fund managers, logic holds that there was a specific group of fund managers that slashed their positions entirely by the end of the third quarter. It’s worth mentioning that Benjamin A. Smith’s Laurion Capital Management dumped the biggest stake of the “upper crust” of funds monitored by Insider Monkey, worth an estimated $35.4 million in call options., and Daniel S. Och’s OZ Management was right behind this move, as the fund dropped about $10.5 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell by 3 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Maxim Integrated Products Inc. (NASDAQ:MXIM). These stocks are Extra Space Storage, Inc. (NYSE:EXR), Cintas Corporation (NASDAQ:CTAS), Cna Financial Corp (NYSE:CNA), and Federal Realty Investment Trust (NYSE:FRT). This group of stocks’ market valuations is similar to Maxim Integrated Products Inc. (NASDAQ:MXIM)’s market valuation.

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $380 million. That figure was $456 million in Maxim Integrated Products Inc. (NASDAQ:MXIM)’s case. Cintas Corporation (NASDAQ:CTAS) is the most popular stock in this table. On the other hand, Cna Financial Corp (NYSE:CNA) is the least popular one with only 11 bullish hedge fund positions. Maxim Integrated Products Inc. (NASDAQ:MXIM) 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, Cintas Corporation (NASDAQ:CTAS) might be a better candidate to consider a long position.