Is Linear Technology Corporation (LLTC) a Good Stock to Buy?

With a general bullishness amongst the heavyweights, key money managers have jumped into Linear Technology Corporation (NASDAQ:LLTC) headfirst. Magnetar Capital, led by Alec Litowitz and Ross Laser, initiated the most outsized position in Linear Technology Corporation (NASDAQ:LLTC). Magnetar Capital had $109.7 million invested in the company at the end of the quarter. Robert Emil Zoellner’s Alpine Associates also initiated a $103.3 million position during the quarter. The other funds with new positions in the stock are Clint Carlson’s Carlson Capital, Nick Niell’s Arrowgrass Capital Partners, and Andre F. Perold’s HighVista Strategies.

Let’s check out hedge fund activity in other stocks similar to Linear Technology Corporation (NASDAQ:LLTC). We will take a look at Goldcorp Inc. (USA) (NYSE:GG), FirstEnergy Corp. (NYSE:FE), Laboratory Corp. of America Holdings (NYSE:LH), and SBA Communications Corporation (NASDAQ:SBAC). This group of stocks’ market valuations are similar to LLTC’s market valuation.

As you can see these stocks had an average of 36 funds with bullish positions and the average amount invested in these stocks was $1.47 billion. That figure was $1.63 billion in LLTC’s case. Laboratory Corp. of America Holdings (NYSE:LH) is the most popular stock in this table, while Goldcorp Inc. (USA) (NYSE:GG) is the least popular one with only 24 bullish hedge fund positions. Linear Technology Corporation (NASDAQ:LLTC) 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 Laboratory Corp. of America Holdings (NYSE:LH) might be a better candidate to consider taking a long position in.

Disclosure: none