Cirrus Logic, Inc. (CRUS): Are Hedge Funds Right About This Stock?

Consequently, some big names have jumped into Cirrus Logic, Inc. (NASDAQ:CRUS) headfirst. Polar Capital, led by Brian Ashford-Russell and Tim Woolley, established the most outsized position in Cirrus Logic, Inc. (NASDAQ:CRUS). According to its latest 13F filing, the fund had $18 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $7.8 million position during the quarter. The other funds with new positions in the stock are Paul Hondros’s AlphaOne Capital Partners and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cirrus Logic, Inc. (NASDAQ:CRUS) but similarly valued. These stocks are Southwest Gas Corporation (NYSE:SWX), Nortel Inversora S.A. (ADR) (NYSE:NTL), Intrexon Corp (NYSE:XON), and Tempur-Pedic International Inc. (NYSE:TPX). This group of stocks’ market caps match CRUS’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $381 million. That figure was $204 million in CRUS’s case. Tempur-Pedic International Inc. (NYSE:TPX) is the most popular stock in this table. On the other hand Nortel Inversora S.A. (ADR) (NYSE:NTL) is the least popular one with only 4 bullish hedge fund positions. Cirrus Logic, Inc. (NASDAQ:CRUS) 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 TPX might be a better candidate to consider taking a long position in.

Disclosure: none.