Here is What Hedge Funds Think About Commscope Holding Company Inc (NASDAQ:COMM)

“EPS beat expectations coming in at $0.42 versus CS estimates of $0.37, while guidance for Q2 was a touch weaker than anticipated. We maintain our PT of $33 and our FY15/16 EPS of $2.00/$2.10. While operationally we do not believe CommScope will see revenue growth return until 2H15, we do believe that the company can outperform the cyclical wireless infrastructure slowdown over time. Beyond this we believe the TE Connectivity deal changes the equity story for the better and will prove highly accretive to EPS over time.”

Keeping this in mind, we’re going to take a peek at the key action encompassing Commscope Holding Company Inc (NASDAQ:COMM).

How are hedge funds trading Commscope Holding Company Inc (NASDAQ:COMM)?

At Q1’s end, a total of 35 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of 30% from the previous quarter. With hedgies’ sentiment swirling, there exists a select group of noteworthy hedge fund managers who invested large sums into the stock.

Maverick Capital, managed by Lee Ainslie, holds the biggest position in Commscope Holding Company Inc (NASDAQ:COMM). Maverick Capital has a $332.8 million position in the stock, comprising 5.4% of its 13F portfolio. The second most bullish hedge fund manager is Chieftain Capital, led by John Shapiro, holding a $260.8 million position; 14.2% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions contain Peter Adam Hochfelder’s Brahman Capital, Christopher Lord’s Criterion Capital and William Duhamel’s Route One Investment Company.

With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Criterion Capital, managed by Christopher Lord, initiated the most outsized position in Commscope Holding Company Inc (NASDAQ:COMM). Criterion Capital had $123.7 million invested in the company at the end of the quarter. William Duhamel’s Route One Investment Company also made a $60.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies, Steve Cohen’s Point72 Asset Management, and Howard Shainker and Akiva Katz’s Bow Street LLC.

Overall, we side with Corsair Capital and other hedge funds. We think the upside in COMM is much more than Credit Suisse’s $33 price target. We believe COMM is likely to outperform the market in the next 18 months.