Does F5 Networks, Inc. (FFIV) Represent a Good Addition to Your Portfolio?

Consequently, key hedge funds have jumped into F5 Networks, Inc. (NASDAQ:FFIV) headfirst. Carlson Capital, managed by Clint Carlson, initiated the most outsized position in F5 Networks, Inc. (NASDAQ:FFIV). Carlson Capital had $19.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $9.2 million position between July and September. The following funds were also among the new FFIV investors: Peter Muller’s PDT Partners, Bruce Garelick’s Garelick Capital Partners, and Neil Chriss’s Hutchin Hill Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as F5 Networks, Inc. (NASDAQ:FFIV) but similarly valued. These stocks are PVH Corp (NYSE:PVH), Marine Harvest ASA (NYSE:MHG), Affiliated Managers Group, Inc. (NYSE:AMG), and Unum Group (NYSE:UNM). This group of stocks’ market caps resemble FFIV’s market cap.

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 $549 million. That figure was $833 million in FFIV’s case. Affiliated Managers Group, Inc. (NYSE:AMG) is the most popular stock in this table with 35 funds holding shares. On the other hand Marine Harvest ASA (NYSE:MHG) is the least popular one with only five bullish hedge fund positions. F5 Networks, Inc. (NASDAQ:FFIV) 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 Affiliated Managers Group, Inc. (NYSE:AMG) might be a better candidate to consider a long position.