Should You Buy Cognex Corporation (CGNX)?

With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Columbus Circle Investors, assembled the most valuable position in Cognex Corporation (NASDAQ:CGNX). Columbus Circle Investors had $13.1 million invested in the company at the end of the quarter. Bruce Kovner’s Caxton Associates LP also made a $3.7 million investment in the stock during the quarter. The following funds were also among the new CGNX investors: Drew Cupps’ Cupps Capital Management, Ken Griffin’s Citadel Investment Group, and Israel Englander’s Millennium Management.

Let’s now review hedge fund activity in other stocks similar to Cognex Corporation (NASDAQ:CGNX). These stocks are Taubman Centers, Inc. (NYSE:TCO), Endo Health Solutions Inc (NASDAQ:ENDP), Genesis Energy, L.P. (NYSE:GEL), and Match Group Inc(NASDAQ:MTCH). All of these stocks’ market caps resemble CGNX’s market cap.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $336 million. That figure was $256 million in CGNX’s case. Endo Health Solutions Inc (NASDAQ:ENDP) is the most popular stock in this table. On the other hand Genesis Energy, L.P. (NYSE:GEL) is the least popular one with only 7 bullish hedge fund positions. Cognex Corporation (NASDAQ:CGNX) 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 ENDP might be a better candidate to consider taking a long position in.

Disclosure: None