Is Xunlei Ltd (XNET) A Good Stock To Buy?

Seeing as Xunlei Ltd (NASDAQ:XNET) has encountered a decline in interest from the smart money, it’s safe to say that there was a specific group of fund managers who sold off their entire stakes heading into Q4. Interestingly, Brian Taylor’s Pine River Capital Management dumped the biggest position of the 700 funds followed by Insider Monkey, worth an estimated $0.6 million in stock, and Matthew Tewksbury’s Stevens Capital Management was right behind this move, as the fund said goodbye to about $0.1 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Xunlei Ltd (NASDAQ:XNET) but similarly valued. We will take a look at KVH Industries, Inc. (NASDAQ:KVHI), Genocea Biosciences Inc (NASDAQ:GNCA), Genie Energy Ltd (NYSE:GNE), and Willdan Group, Inc. (NASDAQ:WLDN). This group of stocks’ market valuations are similar to XNET’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KVHI 6 16875 0
GNCA 6 8042 -2
GNE 5 5897 -2
WLDN 4 6888 4

As you can see these stocks had an average of 5.25 hedge funds with bullish positions and the average amount invested in these stocks was $9 million. That figure was $6 million in XNET’s case. KVH Industries, Inc. (NASDAQ:KVHI) is the most popular stock in this table. On the other hand Willdan Group, Inc. (NASDAQ:WLDN) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Xunlei Ltd (NASDAQ:XNET) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None