Hedge Funds Are Gaining Confidence in Cavium Inc (CAVM)

As aggregate interest increased, specific money managers have been driving this bullishness. Shellback Capital created the most valuable position in Cavium Inc (NASDAQ:CAVM). Tourbillon Capital Partners also initiated a $33.9 million position during the quarter. The following funds were also among the new CAVM investors: Michael A. Price and Amos Meron’s Empyrean Capital Partners, James Dondero’s Highland Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks similar to Cavium Inc (NASDAQ:CAVM). We will take a look at Washington Federal Inc. (NASDAQ:WAFD), Pampa Energia S.A. (ADR) (NYSE:PAM), FS Investment Corporation (NYSE:FSIC), and Paylocity Holding Corp (NASDAQ:PCTY). This group of stocks’ market values match CAVM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WAFD 13 32873 1
PAM 17 284757 -1
FSIC 3 5370 0
PCTY 13 72004 4

As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $99 million. That figure was $347 million in CAVM’s case. Pampa Energia S.A. (ADR) (NYSE:PAM) is the most popular stock in this table. On the other hand FS Investment Corporation (NYSE:FSIC) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Cavium Inc (NASDAQ:CAVM) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and that it’s growing more popular among them, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None