Is Mellanox Technologies, Ltd. (MLNX) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cashed in their entire stakes in the stock during the third quarter. Interestingly, Bruce Garelick’s Garelick Capital Partners cashed in the largest position of the “upper crust” of funds watched by Insider Monkey, valued at an estimated $8.5 million in stock, and Philip Hempleman’s Ardsley Partners was right behind this move, as the fund sold off about $7.4 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Mellanox Technologies, Ltd. (NASDAQ:MLNX) but similarly valued. We will take a look at Och-Ziff Capital Management Group LLC (NYSE:OZM), HSN, Inc. (NASDAQ:HSNI), Virtu Financial Inc (NASDAQ:VIRT), and Colony Financial Inc (NYSE:CLNY). This group of stocks’ market caps match MLNX’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $154 million. That figure was $188 million in MLNX’s case. Colony Financial Inc (NYSE:CLNY) is the most popular stock in this table. On the other hand HSN, Inc. (NASDAQ:HSNI) is the least popular one with only 13 bullish hedge fund positions. Mellanox Technologies, Ltd. (NASDAQ:MLNX) 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 CLNY might be a better candidate to consider taking a long position in.

Disclosure: none.