Cogent Communications Group, Inc. (CCOI): Should You Add It To Your Portfolio?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. It’s worth mentioning that Drew Cupps’ Cupps Capital Management sold off the biggest position of the “upper crust” of funds studied by Insider Monkey, valued at an estimated $2.5 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its call options, about $0.6 million worth.

Let’s also examine hedge fund activity in other stocks similar to Cogent Communications Group, Inc. (NASDAQ:CCOI). These stocks are Houlihan Lokey Inc (NYSE:HLI), OM Asset Management PLC (NYSE:OMAM), ExlService Holdings, Inc. (NASDAQ:EXLS), and USANA Health Sciences, Inc. (NYSE:USNA). This group of stocks’ market caps match CCOI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HLI 10 56230 2
OMAM 12 63974 1
EXLS 8 56257 -5
USNA 14 142282 1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $80 million. That figure was $173 million in CCOI’s case. USANA Health Sciences, Inc. (NYSE:USNA) is the most popular stock in this table. On the other hand ExlService Holdings, Inc. (NASDAQ:EXLS) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Cogent Communications Group, Inc. (NASDAQ:CCOI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None