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Hedge Funds Are Dumping Semtech Corporation (SMTC)

Seeing as Semtech Corporation (NASDAQ:SMTC) has experienced a declining sentiment from the entirety of the hedge funds we track, we can see that there was a specific group of fund managers who sold off their entire stakes in the third quarter. It’s worth mentioning that Ken Hahn’s Quentec Asset Management dumped the biggest position of the 700 funds followed by Insider Monkey, valued at close to $4.9 million in stock. Phill Gross and Robert Atchinson’s fund, Adage Capital Management, also cut its stock, about $4 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 2 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Semtech Corporation (NASDAQ:SMTC) but similarly valued. We will take a look at II-VI, Inc. (NASDAQ:IIVI), BancFirst Corporation (NASDAQ:BANF), Archrock Partners LP (NASDAQ:APLP), and Otter Tail Corporation (NASDAQ:OTTR). This group of stocks’ market valuations resemble SMTC’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IIVI 15 62809 -1
BANF 5 31421 -1
APLP 6 27563 1
OTTR 13 22632 6

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $64 million in SMTC’s case. II-VI, Inc. (NASDAQ:IIVI) is the most popular stock in this table. On the other hand BancFirst Corporation (NASDAQ:BANF) is the least popular one with only 5 bullish hedge fund positions. Semtech Corporation (NASDAQ:SMTC) 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 IIVI might be a better candidate to consider a long position.

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