Mentor Graphics Corp (MENT): Are Hedge Funds Right About This Stock?

As one would reasonably expect, key hedge funds have jumped into Mentor Graphics Corp (NASDAQ:MENT) headfirst. Roystone Capital Partners, managed by Richard Barrera, assembled the biggest position in Mentor Graphics Corp (NASDAQ:MENT). Roystone Capital Partners had $50.6 million invested in the company at the end of the quarter. Isaac Corre’s Governors Lane also made a $10.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Ricky Sandler’s Eminence Capital, Kenneth Squire’s 13D Management, and Neil Chriss’s Hutchin Hill Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Mentor Graphics Corp (NASDAQ:MENT) but similarly valued. These stocks are Franks International NV (NYSE:FI), National General Holdings Corp (NASDAQ:NGHC), South Jersey Industries Inc (NYSE:SJI), and Chemed Corporation (NYSE:CHE). This group of stocks’ market caps match MENT’s market cap.

As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $102 million. That figure was $534 million in MENT’s case. National General Holdings Corp (NASDAQ:NGHC) is the most popular stock in this table. On the other hand South Jersey Industries Inc (NYSE:SJI) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Mentor Graphics Corp (NASDAQ:MENT) 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.