Power Integrations Inc (POWI): Are Hedge Funds Right About This Stock?

Now, key money managers were breaking ground themselves. Legg Mason Capital Management, managed by Bill Miller and the second largest holder, initiated the biggest position in Power Integrations Inc (NASDAQ:POWI) during the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a fresh, $1.5 million investment in the stock during the quarter. The other funds with brand new POWI positions are Glenn Russell Dubin’s Highbridge Capital Management, and Joel Greenblatt’s Gotham Asset Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Power Integrations Inc (NASDAQ:POWI) but similarly valued. These stocks are Trinseo S.A. (NYSE:TSE), Northwest Bancshares, Inc. (NASDAQ:NWBI), Stamps.com Inc. (NASDAQ:STMP), and Cempra Inc (NASDAQ:CEMP). All of these stocks’ market caps resemble POWI’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $123 million. That figure was only $39 million in POWI’s case. Stamps.com Inc. (NASDAQ:STMP) is the most popular stock in this table. On the other hand Northwest Bancshares, Inc. (NASDAQ:NWBI) is the least popular one with only 8 bullish hedge fund positions. Power Integrations Inc (NASDAQ:POWI) 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 STMP might be a better candidate to consider a long position.