Now, specific money managers were breaking ground themselves. Magnetar Capital created the most valuable position in Intersil Corp (NASDAQ:ISIL), while TIG Advisors’ position was also a new one. The other funds with brand new ISIL positions are Farallon Capital, Alpine Associates, and Matthew Halbower’s Pentwater Capital Management.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Intersil Corp (NASDAQ:ISIL) but similarly valued. We will take a look at Penumbra Inc (NYSE:PEN), Office Depot Inc (NYSE:ODP), Esterline Technologies Corporation (NYSE:ESL), and Mueller Industries, Inc. (NYSE:MLI). This group of stocks’ market valuations are closest to ISIL’s market valuation.
Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
---|---|---|---|
PEN | 17 | 158341 | 4 |
ODP | 34 | 284342 | -13 |
ESL | 18 | 377920 | 8 |
MLI | 15 | 249669 | -1 |
As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $268 million. That figure was $319 million in ISIL’s case. Office Depot Inc (NYSE:ODP) is the most popular stock in this table. On the other hand Mueller Industries, Inc. (NYSE:MLI) is the least popular one with only 15 bullish hedge fund positions. Intersil Corp (NASDAQ:ISIL) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but given that the surge was due to the company becoming a merger arb play, we’d prefer to follow hedge fund sentiment into other stocks. In this regard ODP might be a better candidate to consider a long position in.
Disclosure: None