Smart Money is Pouring Into NetApp Inc. (NTAP)

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Ivory Capital (Investment Mgmt) initiated the biggest position in NetApp Inc. (NASDAQ:NTAP), having $21.6 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $9.5 million position during the quarter. The following funds were also among the new NTAP investors: Paul Marshall and Ian Wace’s Marshall Wace LLP, Matthew Tewksbury’s Stevens Capital Management, and Benjamin A. Smith’s Laurion Capital Management.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as NetApp Inc. (NASDAQ:NTAP) but similarly valued. We will take a look at Jack Henry & Associates, Inc. (NASDAQ:JKHY), Computer Sciences Corporation (NYSE:CSC), CPFL Energia S.A. (ADR) (NYSE:CPL), and Valeant Pharmaceuticals Intl Inc (NYSE:VRX). This group of stocks’ market caps resemble NTAP’s market cap.

As you can see these stocks had an average of 26.75 hedge funds with bullish positions and the average amount invested in these stocks was $1.20 billion. That figure was $388 million in NTAP’s case. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is the most popular stock in this table. On the other hand CPFL Energia S.A. (ADR) (NYSE:CPL) is the least popular one with only 5 bullish hedge fund positions. NetApp Inc. (NASDAQ:NTAP) is not the most popular stock in this group but hedge fund interest is still above average and growing. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VRX might be a better candidate to consider a long position in.

Disclosure: None