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Should You Buy Equinix Inc (EQIX)?

As aggregate interest increased, key money managers have been driving this bullishness. Alyeska Investment Group, led by Anand Parekh, created the largest position in Equinix Inc (NASDAQ:EQIX). Alyeska Investment Group had $31.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $22.2 million position during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, Ken Griffin’s Citadel Investment Group, and Matthew Tewksbury’s Stevens Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Equinix Inc (NASDAQ:EQIX). We will take a look at eBay Inc (NASDAQ:EBAY), NXP Semiconductors NV (NASDAQ:NXPI), Humana Inc (NYSE:HUM), and Imperial Oil Limited (USA) (NYSEAMEX:IMO). This group of stocks’ market values resemble EQIX’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EBAY 53 3708761 -5
NXPI 78 2623678 21
HUM 66 5948125 2
IMO 6 76445 -3

As you can see these stocks had an average of 51 investors holding shares at the end of September and the average amount invested in these stocks was $3.09 billion. That figure was $2.13 billion in Equinix’s case. NXP Semiconductors NV (NASDAQ:NXPI) is the most popular stock in this table. On the other hand Imperial Oil Limited (USA) (NYSEAMEX:IMO) is the least popular one with only 6 bullish hedge fund positions. Equinix Inc (NASDAQ:EQIX) 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 NXP Semiconductors NV (NASDAQ:NXPI) might be a better candidate to consider a long position.

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