Is BroadSoft Inc (BSFT) the Right Choice For Your Investment Portfolio?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP dumped the biggest stake of the 700 funds studied by Insider Monkey, worth about $7.2 million in stock, and Jim Simons’ Renaissance Technologies was right behind this move, as the fund dropped about $6.6 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as BroadSoft Inc (NASDAQ:BSFT) but similarly valued. We will take a look at Capital Bank Financial Corp (NASDAQ:CBF), Yirendai Ltd – ADR (NYSE:YRD), 8×8, Inc. (NASDAQ:EGHT), and Omnicell, Inc. (NASDAQ:OMCL). This group of stocks’ market valuations resemble BSFT’s market valuation.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $105 million in BSFT’s case. 8×8, Inc. (NASDAQ:EGHT) is the most popular stock in this table. On the other hand Yirendai Ltd – ADR (NYSE:YRD) is the least popular one with only 5 bullish hedge fund positions. BroadSoft Inc (NASDAQ:BSFT) 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 EGHT might be a better candidate to consider taking a long position in.

Disclosure: None