Should You Buy Mimecast Ltd (MIME)?

Now, key hedge funds have been driving this bullishness. Richard Driehaus’ Driehaus Capital established the biggest position in Mimecast Ltd (NASDAQ:MIME). Driehaus Capital had $8.4 million invested in the company at the end of the quarter. Principal Global Investors’ Columbus Circle Investors also made a $7.1 million investment in the stock during the quarter. The following funds were also among the new MIME investors: Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Jim Simons’ Renaissance Technologies, and Benjamin A. Smith’s Laurion Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Mimecast Ltd (NASDAQ:MIME) but similarly valued. We will take a look at Diodes Incorporated (NASDAQ:DIOD), MacroGenics Inc (NASDAQ:MGNX), Clayton Williams Energy, Inc. (NASDAQ:CWEI), and NCI Building Systems, Inc. (NYSE:NCS). This group of stocks’ market values resemble MIME’s market value.

As you can see these stocks had an average of 15 funds with bullish positions and the average amount invested in these stocks was $145 million. That figure was $103 million in MIME’s case. NCI Building Systems, Inc. (NYSE:NCS) is the most popular stock in this table with 23 funds holding shares. On the other hand Diodes Incorporated (NASDAQ:DIOD) is the least popular one with only eight bullish hedge fund positions. Mimecast Ltd (NASDAQ:MIME) is not the least popular stock in this group but hedge fund interest is close to 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 NCI Building Systems, Inc. (NYSE:NCS) might be a better candidate to consider taking a long position in.

Disclosure: none