Intriguingly, Israel Englander’s Millennium Management said goodbye to the largest stake of the “upper crust” of funds tracked by Insider Monkey, comprising an estimated $6.1 million in stock. Neil Chriss’ fund, Hutchin Hill Capital, also dumped its stock, about $0.9 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Quality Systems, Inc. (NASDAQ:QSII) but similarly valued. These stocks are Leju Holdings Ltd (ADR) (NYSE:LEJU), U.S. Silica Holdings Inc (NYSE:SLCA), RPX Corp (NASDAQ:RPXC), and Meridian Interstate Bancorp, Inc. (NASDAQ:EBSB). All of these stocks’ market caps are closest to QSII’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $111 million. That figure was $48 million in QSII’s case. U.S. Silica Holdings Inc (NYSE:SLCA) is the most popular stock in this table. On the other hand Leju Holdings Ltd (ADR) (NYSE:LEJU) is the least popular one with only 12 bullish hedge fund positions. Quality Systems, Inc. (NASDAQ:QSII) is not the least popular stock in this group but hedge fund interest is just 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 SLCA might be a better candidate to consider a long position.