PMC-Sierra Inc (PMCS): Hedge Funds Are Snapping Up

Consequently, key hedge funds were breaking ground themselves. Water Island Capital assembled the most valuable position in PMC-Sierra Inc (NASDAQ:PMCS). Water Island Capital had $36.7 million invested in the company at the end of the quarter. Ken Grossman and Glen Schneider’s SG Capital Management also initiated a $13.9 million position during the quarter. The other funds with brand new PMCS positions are Dmitry Balyasny’s Balyasny Asset Management, Andy Redleaf’s Whitebox Advisors, and Chuck Royce’s Royce & Associates.

Let’s also examine hedge fund activity in other stocks similar to PMC-Sierra Inc (NASDAQ:PMCS). We will take a look at Apogee Enterprises, Inc. (NASDAQ:APOG), Natus Medical Inc (NASDAQ:BABY), Gogo Inc (NASDAQ:GOGO), and Olin Corporation (NYSE:OLN). All of these stocks’ market caps are closest to PMCS’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $214 million, lower than $540 million in PMCS’s case. Olin Corporation (NYSE:OLN) is the most popular stock in this table. On the other hand Gogo Inc (NASDAQ:GOGO) is the least popular one with only 18 bullish hedge fund positions. PMC-Sierra Inc (NASDAQ:PMCS) 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 OLN might be a better candidate to consider a long position.