Do Hedge Funds Love NetScout Systems, Inc. (NTCT)?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. It’s worth mentioning that Craig C. Albert’s Sheffield Asset Management dropped the biggest stake of the 700 funds tracked by Insider Monkey, valued at close to $22.1 million in stock. Michael Pollack’s fund, Destrier Capital, also dropped its stock, about $5.6 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as NetScout Systems, Inc. (NASDAQ:NTCT) but similarly valued. We will take a look at G-III Apparel Group, Ltd. (NASDAQ:GIII), Swift Transportation Co (NYSE:SWFT), Press Ganey Holdings Inc (NYSE:PGND), and Drew Industries, Inc. (NYSE:DW). This group of stocks’ market valuations are similar to NTCT’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GIII 11 78336 -1
SWFT 30 452388 0
PGND 18 137139 3
DW 29 170687 7

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $210 million. That figure was $331 million in NTCT’s case. Swift Transportation Co (NYSE:SWFT) is the most popular stock in this table. On the other hand G-III Apparel Group, Ltd. (NASDAQ:GIII) is the least popular one with only 11 bullish hedge fund positions. NetScout Systems, Inc. (NASDAQ:NTCT) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SWFT might be a better candidate to consider taking a long position in.

Disclosure: None