Because Mitel Networks Corporation (NASDAQ:MITL) has experienced a falling interest from hedge fund managers, logic holds that there lies a certain “tier” of hedgies who sold off their entire stakes by the end of the third quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dropped the largest stake of the “upper crust” of funds watched by Insider Monkey, worth about $1.9 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund sold off about $1.1 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest was cut by 2 funds by the end of the third quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Mitel Networks Corporation (NASDAQ:MITL) but similarly valued. These stocks are Glaukos Corp (NYSE:GKOS), GasLog Ltd (NYSE:GLOG), Par Pacific Holdings, Inc. (NYSEMKT:PARR), and American Railcar Industries, Inc. (NASDAQ:ARII). This group of stocks’ market valuations resemble Mitel Networks Corporation (NASDAQ:MITL)’s market valuation.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see, these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $196 million. That figure was $90 million in Mitel Networks Corporation (NASDAQ:MITL)’s case. GasLog Ltd (NYSE:GLOG) is the most popular stock in this table. On the other hand, Glaukos Corp (NYSE:GKOS) is the least popular one with only 6 bullish hedge fund positions. Mitel Networks Corporation (NASDAQ:MITL) 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, GasLog Ltd (NYSE:GLOG) might be a better candidate to consider a long position.