What This Metric Says About Hologic, Inc. (HOLX)

Judging by the fact that Hologic, Inc. (NASDAQ:HOLX) has witnessed a decline in interest from the smart money, it’s easy to see that there were a few funds that decided to sell off their positions entirely by the end of the third quarter. At the top of the heap, Christopher James’ Partner Fund Management dumped the biggest investment of the 700 funds followed by Insider Monkey, totaling close to $40.7 million in call options, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund cut about $6.9 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Hologic, Inc. (NASDAQ:HOLX). We will take a look at Philippine Long Distance Telephone (ADR) (NYSE:PHI), Xerox Corporation (NYSE:XRX), CarMax, Inc (NYSE:KMX), and Huaneng Power International Inc (ADR) (NYSE:HNP). This group of stocks’ market caps resemble HOLX’s market cap.

As you can see these stocks had an average of 18 funds with bullish positions at the end of September and the average amount invested in these stocks was $643 million, which compares with $813 million in HOLX’s case. CarMax, Inc (NYSE:KMX) is the most popular stock in this table, while Huaneng Power International Inc (ADR) (NYSE:HNP) is the least popular one with only one fund holding shares. Hologic, Inc. (NASDAQ:HOLX) 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 CarMax, Inc (NYSE:KMX) might be a better candidate to consider a long position.