Hedge Fund Ownership of Intersil Corp (ISIL) Doubles in Q3: Have They Found A Winner?

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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 CapitalAlpine 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

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