We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. Interestingly, John Overdeck and David Siegel’s Two Sigma Advisors got rid of the biggest position of all the investors followed by Insider Monkey, totaling an estimated $0.5 million in stock. Mark Coe’s fund, Coe Capital Management, also dropped its stock, about $0.5 million worth.
Let’s now take a look at hedge fund activity in other stocks similar to Mercury Systems Inc (NASDAQ:MRCY). We will take a look at Luminex Corporation (NASDAQ:LMNX), State Auto Financial (NASDAQ:STFC), Scientific Games Corp (NASDAQ:SGMS), and Synergy Pharmaceuticals Inc (NASDAQ:SGYP). This group of stocks’ market caps match MRCY’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $181 million. That figure was $103 million in MRCY’s case. Scientific Games Corp (NASDAQ:SGMS) is the most popular stock in this table. On the other hand State Auto Financial (NASDAQ:STFC) is the least popular one with only 4 bullish hedge fund positions. Mercury Systems Inc (NASDAQ:MRCY) 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 SGMS might be a better candidate to consider taking a long position in.