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Do Hedge Funds Love Harmonic Inc (HLIT)?

Because Harmonic Inc (NASDAQ:HLIT) has experienced a declining sentiment from the smart money, we can see that there were a few hedgies that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group dropped the biggest stake of all the hedgies monitored by Insider Monkey, worth close to $0.7 million in call options., and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund cut about $0.4 million worth. These moves are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Harmonic Inc (NASDAQ:HLIT). These stocks are GasLog Partners LP (NYSE:GLOP), Natural Grocers by Vitamin Cottage Inc (NYSE:NGVC), Tronox Ltd (NYSE:TROX), and HomeStreet Inc (NASDAQ:HMST). All of these stocks’ market caps are similar to HLIT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GLOP 4 17962 -3
NGVC 7 13775 2
TROX 12 50093 -5
HMST 12 17257 -1

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $25 million, lower than the $59 million in HLIT’s case. Tronox Ltd (NYSE:TROX) and HomeStreet Inc (NASDAQ:HMST) are the most popular stocks in this table. On the other hand, GasLog Partners LP (NYSE:GLOP) is the least popular one with only 4 bullish hedge fund positions. Harmonic Inc (NASDAQ:HLIT) 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 TROX and HMST might be better candidates to consider for a long position.

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