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Here is What Hedge Funds Think About Mentor Graphics Corp (MENT)

Judging by the fact that Mentor Graphics Corp (NASDAQ:MENT) has experienced a declining sentiment from the smart money, it’s safe to say that there exists a select few hedgies who were dropping their entire stakes by the end of the third quarter. It’s worth mentioning that Glenn Russell Dubin’s Highbridge Capital Management dropped the largest stake of the “upper crust” of funds monitored by Insider Monkey, totaling about $13.7 million in stock. Renaissance Technologies also said goodbye to its stock, about $11.5 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Mentor Graphics Corp (NASDAQ:MENT). These stocks are Progressive Waste Solutions Ltd (USA) (NYSE:BIN), Enstar Group Ltd. (NASDAQ:ESGR), WGL Holdings Inc (NYSE:WGL), and Cypress Semiconductor Corporation (NASDAQ:CY). All of these stocks’ market caps match Mentor Graphics Corp (NASDAQ:MENT)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BIN 21 277354 0
ESGR 11 319070 -1
WGL 11 53686 0
CY 32 649609 -3

As you can see, these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $325 million. That figure was $592 million in Mentor Graphics Corp (NASDAQ:MENT)’s case. Cypress Semiconductor Corporation (NASDAQ:CY) is the most popular stock in this table. On the other hand, Enstar Group Ltd. (NASDAQ:ESGR) is the least popular one with only 11 bullish hedge fund positions. Mentor Graphics Corp (NASDAQ:MENT) 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, Cypress Semiconductor Corporation (NASDAQ:CY) might be a better candidate to consider a long position.

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