Is NQ Mobile Inc (ADR) (NQ) A Good Stock To Buy?

Judging by the fact that NQ Mobile Inc (ADR) (NYSE:NQ) has faced falling interest from the smart money, logic holds that there was a specific group of money managers that slashed their full holdings in the third quarter. Intriguingly, Christopher R. Hansen’s Valiant Capital cut the largest position of the “upper crust” of funds monitored by Insider Monkey, valued at about $14.2 million in stock. Rob Romero’s fund, Connective Capital Management, also dropped its stock, about $1.9 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 3 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as NQ Mobile Inc (ADR) (NYSE:NQ) but similarly valued. We will take a look at Federal Agricultural Mortgage Corp. (NYSE:AGM), Exar Corporation (NASDAQ:EXAR), Aerohive Networks Inc (NYSE:HIVE), and Genco Shipping & Trading Limited (NYSE:GNK). This group of stocks’ market caps match NQ’s market cap.

As you can see these stocks had an average of 8.75 hedge funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $8 million in NQ’s case. Exar Corporation (NASDAQ:EXAR) is the most popular stock in this table. On the other hand Federal Agricultural Mortgage Corp. (NYSE:AGM) is the least popular one with only 6 bullish hedge fund positions. NQ Mobile Inc (ADR) (NYSE:NQ) 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 EXAR might be a better candidate to consider a long position.