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Should You Buy ModusLink Global Solutions, Inc. (MLNK)?

Due to the fact that ModusLink Global Solutions, Inc. (NASDAQ:MLNK) has experienced falling interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of money managers that decided to sell off their positions entirely heading into Q4. At the top of the heap, Noah Levy and Eugene Dozortsev’s Newtyn Management sold off the largest stake of all the hedgies watched by Insider Monkey, valued at an estimated $0.7 million in stock. Chao Ku’s fund, Nine Chapters Capital Management, also said goodbye to its stock, about $0 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as ModusLink Global Solutions, Inc. (NASDAQ:MLNK) but similarly valued. We will take a look at Harmony Merger Corp (NASDAQ:HRMN), magicJack VocalTec Ltd (NASDAQ:CALL), Planet Payment Inc (NASDAQ:PLPM), and RealNetworks Inc (NASDAQ:RNWK). All of these stocks’ market caps are similar to MLNK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HRMN 4 17719 1
CALL 9 11341 0
PLPM 10 4986 4
RNWK 8 37260 -3

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $61 million in MLNK’s case. Planet Payment Inc (NASDAQ:PLPM) is the most popular stock in this table, while Harmony Merger Corp (NASDAQ:HRMN) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks ModusLink Global Solutions, Inc. (NASDAQ:MLNK) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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