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

Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is ModusLink Global Solutions, Inc. (NASDAQ:MLNK), so let’s take a closer look at the sentiment that surrounds it in the current quarter.

ModusLink Global Solutions, Inc. (NASDAQ:MLNK) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 11 hedge funds’ portfolios at the end of the third quarter of 2015. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Harmony Merger Corp (NASDAQ:HRMN), magicJack VocalTec Ltd (NASDAQ:CALL), and Planet Payment Inc (NASDAQ:PLPM) to gather more data points.

To most shareholders, hedge funds are perceived as worthless, outdated financial vehicles of the past. While there are greater than 8000 funds with their doors open at present, Our experts hone in on the aristocrats of this group, approximately 700 funds. These investment experts shepherd the majority of the hedge fund industry’s total capital, and by following their finest equity investments, Insider Monkey has uncovered numerous investment strategies that have historically exceeded the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points annually for a decade in their back tests.

With all of this in mind, we’re going to take a look at the key action surrounding ModusLink Global Solutions, Inc. (NASDAQ:MLNK).

How are hedge funds trading ModusLink Global Solutions, Inc. (NASDAQ:MLNK)?

At the end of the third quarter, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from one quarter earlier. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Steel Partners, managed by Warren Lichtenstein, holds the largest position in ModusLink Global Solutions, Inc. (NASDAQ:MLNK). Steel Partners has an $47.1 million position in the stock, comprising 7.6% of its 13F portfolio. Coming in second is MAST Capital, managed by David Steinberg, which holds an $7.4 million position; the fund has 10.7% of its 13F portfolio invested in the stock. Some other professional money managers that hold long positions consist of Jim Simons’ Renaissance Technologies, Ross Berman’s Green Owl Capital Management, and Mario Gabelli’s GAMCO Investors.