Gladstone Investment Corporation (GAIN): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, some big names have jumped into Gladstone Investment Corporation (NASDAQ:GAIN) headfirst. Algert Coldiron Investors, led by Peter Algert and Kevin Coldiron, assembled the largest position in Gladstone Investment Corporation (NASDAQ:GAIN). Algert Coldiron Investors had $1.2 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.4 million position during the quarter. The following funds were also among the new GAIN investors: Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital and Chao Ku’s Nine Chapters Capital Management.

Let’s go over hedge fund activity in other stocks similar to Gladstone Investment Corporation (NASDAQ:GAIN). These stocks are Tilly’s Inc (NYSE:TLYS), Limoneira Company (NASDAQ:LMNR), Tuesday Morning Corporation (NASDAQ:TUES), and Clearfield, Inc. (NASDAQ:CLFD). All of these stocks’ market caps are similar to GAIN’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $6 million in GAIN’s case. Tilly’s Inc (NYSE:TLYS) is the most popular stock in this table. On the other hand Limoneira Company (NASDAQ:LMNR) is the least popular one with only 2 bullish hedge fund positions. Gladstone Investment Corporation (NASDAQ:GAIN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TLYS might be a better candidate to consider taking a long position in.

Disclosure: None