Here is What Hedge Funds Think About Avago Technologies Ltd (AVGO)

Judging by the fact that Avago Technologies Ltd (NASDAQ:AVGO) has faced declining sentiment from the smart money, it’s easy to see that there were a few funds who sold off their positions entirely in the third quarter. Interestingly, Doug Silverman and Alexander Klabin’s Senator Investment Group dropped the biggest stake of the 700 funds tracked by Insider Monkey, valued at close to $166.2 million in stock. James Dinan’s fund, York Capital Management, also sold off its stock, about $159 million worth. These bearish behaviors are interesting, as total hedge fund interest was cut by 6 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Avago Technologies Ltd (NASDAQ:AVGO) but similarly valued. These stocks are Prudential Financial Inc (NYSE:PRU), General Mills, Inc. (NYSE:GIS), ACE Limited (NYSE:ACE), and Luxottica Group SpA (ADR) (NYSE:LUX). This group of stocks’ market valuations match AVGO’s market valuation.

As you can see these stocks had an average of 27.25 hedge funds with bullish positions and the average amount invested in these stocks was $701 million. That figure was $4396 million in AVGO’s case. Prudential Financial Inc (NYSE:PRU) is the most popular stock in this table. On the other hand Luxottica Group SpA (ADR) (NYSE:LUX) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Avago Technologies Ltd (NASDAQ:AVGO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.