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Gigamon Inc (GIMO): Are Hedge Funds Right About This Stock?

Judging by the fact that Gigamon Inc (NYSE:GIMO) has faced bearish sentiment from hedge fund managers, it’s safe to say that there exists a select few funds that decided to sell off their entire stakes by the end of the third quarter. Interestingly, Anand Parekh’s Alyeska Investment Group said goodbye to the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at close to $14.1 million in stock. Mark Kingdon’s fund, Kingdon Capital, also dumped its stock, about $5 million worth. These moves are interesting, as total hedge fund interest fell by 1 fund by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Gigamon Inc (NYSE:GIMO). These stocks are TeleTech Holdings, Inc. (NASDAQ:TTEC), Rovi Corporation (NASDAQ:ROVI), CNOOC Limited (ADR) (NYSE:CEO), and OneBeacon Insurance Group, Ltd. (NYSE:OB). This group of stocks’ market values are similar to GIMO’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TTEC 8 18368 -1
ROVI 1 2876 -21
CEO 9 99931 -3
OB 10 18859 -1

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $228 million in GIMO’s case. OneBeacon Insurance Group, Ltd. (NYSE:OB) is the most popular stock in this table. On the other hand Rovi Corporation (NASDAQ:ROVI) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Gigamon Inc (NYSE:GIMO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and have a lot more money invested in it, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None

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