Is Inphi Corporation (IPHI) A Good Stock To Buy?

As aggregate interest increased, key hedge funds have jumped into Inphi Corporation (NYSE:IPHI) headfirst. Sandler Capital Management, led by Andrew Sandler, created the largest position in Inphi Corporation (NYSE:IPHI). According to its latest 13F filing, the fund had $10.1 million invested in the company at the end of the quarter. Sheetal Duggal’s Thrax Management also made a $6.2 million investment in the stock during the quarter. The other funds with brand new IPHI positions are Ken Griffin’s Citadel Investment Group, Andrew Sandler’s Sandler Capital Management, and Nick Niell’s Arrowgrass Capital Partners.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Inphi Corporation (NYSE:IPHI) but similarly valued. These stocks are HNI Corp (NYSE:HNI), Controladora Vuela Co Avcn SA CV (ADR) (NYSE:VLRS), Luxoft Holding Inc (NYSE:LXFT), and The Corporate Executive Board Company (NYSE:CEB). This group of stocks’ market valuations are similar to IPHI’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 $84 million. That figure was $291 million in IPHI’s case. HNI Corp (NYSE:HNI) is the most popular stock in this table. On the other hand Luxoft Holding Inc (NYSE:LXFT) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Inphi Corporation (NYSE:IPHI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.