Is Abaxis Inc (ABAX) Worthy of Your Portfolio?

Seeing as Abaxis Inc (NASDAQ:ABAX) has experienced falling interest from the aggregate hedge fund industry, logic holds that there is a sect of hedge funds that decided to sell off their entire stakes in the third quarter. Intriguingly, Israel Englander’s Millennium Management cashed in the biggest stake of all the investors monitored by Insider Monkey, totaling close to $4.5 million in stock. D. E. Shaw’s D E Shaw, also dumped its stock, about $3 million worth.

Let’s check out hedge fund activity in other stocks similar to Abaxis Inc (NASDAQ:ABAX). These stocks are Coherus Biosciences Inc (NASDAQ:CHRS), Brookfield Business Partners L.P. Limited Partnership Units(NYSE:BBU), Engility Holdings Inc (NYSE:EGL), and Insight Enterprises, Inc. (NASDAQ:NSIT). This group of stocks’ market valuations match ABAX’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $65 million. That figure was $26 million in ABAX’s case. Insight Enterprises, Inc. (NASDAQ:NSIT) is the most popular stock in this table. On the other hand Brookfield Business Partners L.P. Limited Partnership Units(NYSE:BBU) is the least popular one with only 4 bullish hedge fund positions. Abaxis Inc (NASDAQ:ABAX) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NSIT might be a better candidate to consider taking a long position in.

Disclosure: None