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Is Cavium Inc (NASDAQ:CAVM) the right investment to pursue these days? The smart money is becoming more confident. The number of long hedge fund positions increased by 4 lately. At the end of this article we will also compare CAVM to other stocks including Washington Federal Inc. (NASDAQ:WAFD), Pampa Energia S.A. (ADR) (NYSE:PAM), and FS Investment Corporation (NYSE:FSIC) to get a better sense of its popularity.
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Hedge fund activity in Cavium Inc (NASDAQ:CAVM)
At Q3’s end, a total of 24 of the hedge funds tracked by Insider Monkey were long this stock, a 20% rise from the second quarter of 2016 and the second straight quarter with a notable increase in hedge fund ownership. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Citadel Investment Group, managed by Ken Griffin, holds the biggest position in Cavium Inc (NASDAQ:CAVM). Citadel Investment Group has a $69.7 million position in the stock. The second most bullish fund manager is Shellback Capital, led by Doug Gordon, Jon Hilsabeck and Don Jabro, holding a $53 million position; the fund has 4.5% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions consist of Vivek Mehta and Aaron Husock’s ShearLink Capital, Thomas E. Claugus’ GMT Capital and Jason Karp’s Tourbillon Capital Partners.
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|
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.