Five Cybersecurity Stocks Hedge Funds Love: From Juniper (JNPR) To Palo Alto (PANW)

#3. F5 Networks, Inc. (NASDAQ:FFIV)

– Number of Hedge Funds With Long Positions (as of June 30): 31

– Total Value of Hedge Funds’ Holdings (as of June 30): $1.05 billion

– Hedge Funds’ Holdings as Percent of Float (as of June 30): 13.9%

F5 Networks, Inc. (NASDAQ:FFIV) witnessed a 10% decline in the number of hedge funds long its shares during the second quarter, to 31. However, investors like First Eagle Investment Management, with 1.53 million shares worth $174 million, and Ken Griffin’s Citadel Advisors, with 1.2 million shares, remained quite bullish. Unlike its peers above, F5 Networks, Inc. (NASDAQ:FFIV) has had a great year, with its stock up by roughly 22% since the start of January, and by more than 5% since the third quarter began. In the past month, however, shares have dipped by more than 4%, driven by the resignation of VP of Product Development and Chief Technical Officer, Karl Triebes.

#2. Qihoo 360 Technology Co Ltd (NYSE:QIHU)

– Number of Hedge Funds With Long Positions (as of June 30): 32

– Total Value of Hedge Funds’ Holdings (as of June 30): $1.39 billion

– Hedge Funds’ Holdings as Percent of Float (as of June 30): 14.8%

The runner up on our list of popular cybersecurity stocks is Qihoo 360 Technology Co Ltd (NYSE:QIHU), in which 32 hedge funds in our database were long on June 30, up by 14.2% quarter-over-quarter. Among them was Frank Brosens’ Taconic Capital Advisors with 2.79 million shares worth more than $204 million on June 30. Leaving the big drop seen in May aside, Qihoo 360 Technology Co Ltd (NYSE:QIHU) had traded relatively flat this year, gaining 5.6% since January. However, the stock stopped trading in July, as the company went private.

#1. Palo Alto Networks Inc (NYSE:PANW)

– Number of Hedge Funds With Long Positions (as of June 30): 37

– Total Value of Hedge Funds’ Holdings (as of June 30): $801.09 million

– Hedge Funds’ Holdings as Percent of Float (as of June 30): 7.3%

The most popular cybersecurity stock among the funds that we track was Palo Alto Networks Inc (NYSE:PANW), even though the company counted five fewer supporters among the funds that we track than it did on March 31. Bulls included Anand Parekh’s Alyeska Investment Group, which more than doubled its holding over the quarter to 1.03 million shares, and Karthik Sarma’s SRS Investment Management, which added a new stake to its portfolio worth more than $123 million.

Palo Alto Networks Inc (NYSE:PANW) lost more than 30% of its value over the first half of the year. However, shares have rebounded in the second half gaining almost 21%, in spite of lukewarm quarterly results posted in late-August. Most recently, the stock was helped by JMP Securities’ price target hike on it to $180 from $165 (it has a ‘Market Outperform’ rating on the stock) and Wunderlich’s ‘Buy’ rating and $190 price target issued earlier this week.

Disclosure: Javier Hasse holds no interest in any of the securities or entities mentioned above.