Diodes Incorporated (DIOD): Are Hedge Funds Right About This Stock?

Consequently, some big names have been driving this bullishness. Highbridge Capital Management, led by Glenn Russell Dubin, initiated the most valuable position in Diodes Incorporated (NASDAQ:DIOD). According to its latest 13F filing, the fund had $0.3 million invested in the company at the end of the quarter. Frank Slattery’s Symmetry Peak Management also made a $0.3 million investment in the stock during the quarter. The only other fund with a new position in the stock is John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Diodes Incorporated (NASDAQ:DIOD) but similarly valued. We will take a look at MacroGenics Inc (NASDAQ:MGNX), Clayton Williams Energy, Inc. (NASDAQ:CWEI), NCI Building Systems, Inc. (NYSE:NCS), and Stewart Information Services Corp (NYSE:STC). This group of stocks’ market caps match DIOD’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $207 million. That figure was $62 million in DIOD’s case. NCI Building Systems, Inc. (NYSE:NCS) is the most popular stock in this table. On the other hand Clayton Williams Energy, Inc. (NASDAQ:CWEI) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Diodes Incorporated (NASDAQ:DIOD) is even less popular than CWEI. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.