Hedge Funds Are Crazy About Electronics For Imaging, Inc. (EFII)

With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Columbus Circle Investors, managed by Clifford Fox, initiated the most valuable position in Electronics For Imaging, Inc. (NASDAQ:EFII). The fund reportedly had $26.3 million invested in the company at the end of the quarter. Nick Niell’s Arrowgrass Capital Partners also made a $9.2 million investment in the stock during the quarter. The following funds were also among the new EFII investors: John Croghan and Richard Fradin’s Rail-Splitter Capital Management and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s go over hedge fund activity in other stocks similar to Electronics For Imaging, Inc. (NASDAQ:EFII). We will take a look at Insys Therapeutics Inc (NASDAQ:INSY), First Financial Bankshares Inc (NASDAQ:FFIN), Louisiana-Pacific Corporation (NYSE:LPX), and Monolithic Power Systems, Inc. (NASDAQ:MPWR). This group of stocks’ market valuations are similar to EFII’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $217 million. That figure was $267 million in EFII’s case. Louisiana-Pacific Corporation (NYSE:LPX) is the most popular stock in this table, while First Financial Bankshares Inc (NASDAQ:FFIN) is the laggard with only 5 bullish hedge fund positions. Electronics For Imaging, Inc. (NASDAQ:EFII) is not the least popular stock in this group, but hedge fund interest is still below 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 LPX might be a better candidate to consider a long position.