Is Multi-Fineline Electronix, Inc. (MFLX) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, key hedge funds have jumped into Multi-Fineline Electronix, Inc. (NASDAQ:MFLX) headfirst. Harvest Capital Strategies, managed by Joseph A. Jolson, assembled the largest position in Multi-Fineline Electronix, Inc. (NASDAQ:MFLX). Harvest Capital Strategies had $1.7 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also initiated a $0.5 million position during the quarter. The only other fund with a brand new MFLX position is Lee Munder’s Lee Munder Capital Group.

Let’s also examine hedge fund activity in other stocks similar to Multi-Fineline Electronix, Inc. (NASDAQ:MFLX). These stocks are Catchmark Timber Trust Inc (NYSE:CTT), Apollo Residential Mortgage Inc (NYSE:AMTG), Natural Health Trends Corp. (NASDAQ:NHTC), and Calix Inc (NYSE:CALX). This group of stocks’ market valuations match MFLX’s market valuation.

As you can see these stocks had an average of 13.75 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $23 million in MFLX’s case. Calix Inc (NYSE:CALX) is the most popular stock in this table. On the other hand Catchmark Timber Trust Inc (NYSE:CTT) is the least popular one with only 11 bullish hedge fund positions. Multi-Fineline Electronix, Inc. (NASDAQ:MFLX) 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 CALX might be a better candidate to consider a long position.