Should You Add CSG Systems International, Inc. (CSGS) to Your Portfolio?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. It’s worth mentioning that Ric Dillon’s Diamond Hill Capital sold off the biggest stake of all the investors watched by Insider Monkey, worth close to $1.8 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $1 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to CSG Systems International, Inc. (NASDAQ:CSGS). We will take a look at 8×8, Inc. (NASDAQ:EGHT), Gigamon Inc (NYSE:GIMO), TeleTech Holdings, Inc. (NASDAQ:TTEC), and Rovi Corporation (NASDAQ:ROVI). This group of stocks’ market valuations match CSGS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EGHT 20 163366 3
GIMO 21 228017 -1
TTEC 8 18368 -1
ROVI 1 2876 -21

As you can see these stocks had an average of 12 investors with bullish positions and the average amount invested in these stocks was $103 million. That figure was $158 million in CSGS’s case. Gigamon Inc (NYSE:GIMO) is the most popular stock in this table, while Rovi Corporation (NASDAQ:ROVI) is the least popular one with only one fund holding shares. CSG Systems International, Inc. (NASDAQ:CSGS) 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 Gigamon Inc (NYSE:GIMO) might be a better candidate to consider taking a long position in.

Disclosure: None