8×8, Inc. (EGHT): Are Hedge Funds Right About This Stock?

As one would reasonably expect, some big names have jumped into 8×8, Inc. (NASDAQ:EGHT) headfirst. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, established the most valuable position in 8×8, Inc. (NASDAQ:EGHT). Arrowstreet Capital had $14.8 million invested in the company at the end of the quarter. Spencer M. Waxman‘s Shannon River Fund Management also made a $6.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Marshall and Ian Wace’s Marshall Wace LLP, Brad Farber’s Atika Capital, and Chuck Royce’s Royce & Associates.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as 8×8, Inc. (NASDAQ:EGHT) but similarly valued. We will take a look at Gigamon Inc (NYSE:GIMO), TeleTech Holdings, Inc. (NASDAQ:TTEC), Rovi Corporation (NASDAQ:ROVI), and CNOOC Limited (ADR) (NYSE:CEO). This group of stocks’ market values are similar to EGHT’s market value.

As you can see these stocks had an average of 10 funds with bullish positions and the average amount invested in these stocks was $87 million, which is lower than the $163 million figure in EGHT’s case. Gigamon Inc (NYSE:GIMO) is the most popular stock in this table. On the other hand Rovi Corporation (NASDAQ:ROVI) is the least popular one with only one investor holding shares. 8×8, Inc. (NASDAQ:EGHT) 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 Gigamon Inc (NYSE:GIMO) might be a better candidate to consider taking a long position in.