Is Gigamon Inc (GIMO) A Good Stock To Buy?

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article, we look at what those funds think of Gigamon Inc (NYSE:GIMO) based on that data.

Hedge fund interest in Gigamon Inc (NYSE:GIMO) shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article, we will examine companies such as Kulicke and Soffa Industries Inc. (NASDAQ:KLIC), Textura Corp (NYSE:TXTR), and AAR Corp. (NYSE:AIR) to gather more data points.

In the financial world, there are numerous metrics market participants employ to evaluate their holdings. A pair of the less utilized metrics are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the best picks of the top hedge fund managers can outperform their index-focused peers by a very impressive amount (see the details here).

Now, let’s take a peek at the new action surrounding Gigamon Inc (NYSE:GIMO).

What does the smart money think about Gigamon Inc (NYSE:GIMO)?

At the end of the third quarter, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Thomas Ellis and Todd Hammer’s North Run Capital has the largest position in Gigamon Inc (NYSE:GIMO), worth close to $24.1 million, amounting to 2.4% of its total 13F portfolio. On North Run Capital’s heels is Millennium Management, led by Israel Englander, holding a $17.5 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Remaining peers that are bullish contain Renaissance Technologies, Mark Kingdon’s Kingdon Capital, and D E Shaw.