Hedge Funds Are Pouring Into Microsemi Corporation (MSCC): Should You Follow?

As industry-wide interest jumped, key hedge funds were leading the bulls’ herd. Sandler Capital Management, managed by Andrew Sandler, established the biggest call position in Microsemi Corporation (NASDAQ:MSCC). Sandler Capital Management had $14.7 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also initiated a $12.5 million position during the quarter. The other funds with brand new MSCC positions are John Burbank’s Passport Capital, Israel Englander’s Millennium Management, and Ira Unschuld’s Brant Point Investment Management.

Let’s go over hedge fund activity in other stocks similar to Microsemi Corporation (NASDAQ:MSCC). We will take a look at BBVA Banco Frances S.A. (ADR) (NYSE:BFR), CONSOL Energy Inc. (NYSE:CNX), Vermilion Energy Inc (NYSE:VET), and ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD). This group of stocks’ market values match MSCC’s market value.

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 $720 million. That figure was $190 million in MSCC’s case. CONSOL Energy Inc. (NYSE:CNX) is the most popular stock in this table. On the other hand Vermilion Energy Inc (NYSE:VET) is the least popular one with only 8 bullish hedge fund positions. Microsemi Corporation (NASDAQ:MSCC) 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 CNX might be a better candidate to consider a long position in, though MSCC is one to watch.

Disclosure: None