Should You Buy Cognex Corporation (CGNX)?

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With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Columbus Circle Investors, assembled the most valuable position in Cognex Corporation (NASDAQ:CGNX). Columbus Circle Investors had $13.1 million invested in the company at the end of the quarter. Bruce Kovner’s Caxton Associates LP also made a $3.7 million investment in the stock during the quarter. The following funds were also among the new CGNX investors: Drew Cupps’ Cupps Capital Management, Ken Griffin’s Citadel Investment Group, and Israel Englander’s Millennium Management.

Let’s now review hedge fund activity in other stocks similar to Cognex Corporation (NASDAQ:CGNX). These stocks are Taubman Centers, Inc. (NYSE:TCO), Endo Health Solutions Inc (NASDAQ:ENDP), Genesis Energy, L.P. (NYSE:GEL), and Match Group Inc(NASDAQ:MTCH). All of these stocks’ market caps resemble CGNX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TCO 19 436312 1
ENDP 32 797272 -4
GEL 7 22104 0
MTCH 19 90149 3

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $336 million. That figure was $256 million in CGNX’s case. Endo Health Solutions Inc (NASDAQ:ENDP) is the most popular stock in this table. On the other hand Genesis Energy, L.P. (NYSE:GEL) is the least popular one with only 7 bullish hedge fund positions. Cognex Corporation (NASDAQ:CGNX) 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 ENDP might be a better candidate to consider taking a long position in.

Disclosure: None

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