Cascade Microtech, Inc. (CSCD): Are Hedge Funds Right About This Stock?

Because Cascade Microtech, Inc. (NASDAQ:CSCD) has witnessed a drop in interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedge funds who sold off their positions entirely heading into Q4. At the top of the heap, Matthew Drapkin and Steven R. Becker’s Becker Drapkin Management dropped the biggest position of the 700 funds tracked by Insider Monkey, comprising an estimated $7 million in stock. Robert G. Moses’ fund, RGM Capital, also sold off its stock, about $6.9 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 2 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to Cascade Microtech, Inc. (NASDAQ:CSCD). We will take a look at Franklin Financial Network Inc (NYSE:FSB), DURECT Corporation (NASDAQ:DRRX), Bluerock Residential Growth REIT Inc (NYSEMKT:BRG), and Flexsteel Industries, Inc. (NASDAQ:FLXS). This group of stocks’ market caps resemble CSCD’s market cap.

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 $25 million. That figure was also $25 million in CSCD’s case. Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) is the most popular stock in this table, while Franklin Financial Network Inc (NYSE:FSB) is the least popular one with only 4 bullish hedge fund positions. Cascade Microtech, Inc. (NASDAQ:CSCD) 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 BRG might be a better candidate to consider a long position.