Here is What Hedge Funds Think About MRV Communications, Inc. (MRVC)

As industrywide interest jumped, key hedge funds have jumped into MRV Communications, Inc. (NASDAQ:MRVC) headfirst. Silver Capital Management LLC assembled a big position in MRV Communications, Inc. (NASDAQ:MRVC). Silver Capital Management LLC had $0.5 million invested in the company at the end of the quarter. Springbok Capital also initiated a $0.3 million position during the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as MRV Communications, Inc. (NASDAQ:MRVC) but similarly valued. These stocks are RadiSys Corporation (NASDAQ:RSYS), Energy XXI Limited (NASDAQ:EXXI), VAALCO Energy, Inc. (NYSE:EGY), and ReneSola Ltd. (ADR) (NYSE:SOL). All of these stocks’ market caps are similar to MRV Communications, Inc. (NASDAQ:MRVC)’s market cap.

As you can see, these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $32 million in MRV Communications, Inc. (NASDAQ:MRVC)’s case. Energy XXI Limited (NASDAQ:EXXI) is the most popular stock in this table, while ReneSola Ltd. (ADR) (NYSE:SOL) is the least popular. But, if we include MRC Communications, Inc. (NASDAQ:MRVC) in the table it would take over the lowest position from Rene Sola Ltd. (ADR) (NYSE:SOL). Therefore, it seems that smart money isn’t fond of this stock, which doesn’t necessarily mean it is overvalued and not a good choice for investment considering the bullish thesis. In any case, further research is needed.