Is Lumentum Holdings Inc (LITE) A Good Stock To Buy?

As aggregate interest increased, specific money managers were breaking ground themselves. Carlson Capital established the most valuable position in Lumentum Holdings Inc (NASDAQ:LITE). Carlson Capital had $12.1 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $9 million investment in the stock during the quarter. The other funds with new positions in the stock are Charles Clough’s Clough Capital Partners, Ken Griffin’s Citadel Investment Group, and David Harding’s Winton Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Lumentum Holdings Inc (NASDAQ:LITE) but similarly valued. These stocks are Lexmark International Inc (NYSE:LXK), Fulton Financial Corp (NASDAQ:FULT), Versum Materials Inc (NYSE:VSM), and FireEye Inc (NASDAQ:FEYE). This group of stocks’ market caps are closest to LITE’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $174 million. That figure was $148 million in LITE’s case. FireEye Inc (NASDAQ:FEYE) is the most popular stock in this table. On the other hand Fulton Financial Corp (NASDAQ:FULT) is the least popular one with only 10 bullish hedge fund positions. Lumentum Holdings Inc (NASDAQ:LITE) 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 FEYE might be a better candidate to consider taking a long position in.

Disclosure: None