Should You Add Hollysys Automation Technologies Ltd (HOLI) to Your Portfolio?

As one would reasonably expect, key hedge funds were leading the bulls’ herd. Renaissance Technologies, one of the top hedge funds in the world, initiated the most outsized position in Hollysys Automation Technologies Ltd (NASDAQ:HOLI). Renaissance Technologies had $0.8 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Paul Tudor Jones’s Tudor Investment Corp, and Mike Vranos’ Ellington.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Hollysys Automation Technologies Ltd (NASDAQ:HOLI) but similarly valued. We will take a look at WMS Industries Inc. (NYSE:WMS), Magellan Health Services Inc (NASDAQ:MGLN), Progress Software Corporation (NASDAQ:PRGS), and CYS Investments Inc (NYSE:CYS). This group of stocks’ market caps are similar to HOLI’s market cap.

As you can see these stocks had an average of 16 funds with bullish positions and the average amount invested in these stocks was $158 million, compared to $84 million in HOLI’s case. Magellan Health Services Inc (NASDAQ:MGLN) is the most popular stock in this table, while CYS Investments Inc (NYSE:CYS) is the least popular one with only 12 bullish hedge fund positions. Hollysys Automation Technologies Ltd (NASDAQ:HOLI) 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 Magellan Health Services Inc (NASDAQ:MGLN) might be a better candidate to consider taking a long position in.

Disclosure: none