Hedge Fund Sentiment Is Stagnant On StealthGas Inc. (GASS)

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s go over hedge fund activity in other stocks similar to StealthGas Inc. (NASDAQ:GASS). We will take a look at Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH), Calamos Asset Management, Inc (NASDAQ:CLMS), Castle Brands Inc (NYSEAMEX:ROX), and Westfield Financial, Inc. (NASDAQ:WFD). This group of stocks’ market values match GASS’s market value.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $50 million in GASS’s case. Tetraphase Pharmaceuticals Inc (NASDAQ:TTPH) is the most popular stock in this table. On the other hand Westfield Financial, Inc. (NASDAQ:WFD) is the least popular one with only 4 bullish hedge fund positions. StealthGas Inc. (NASDAQ:GASS) 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 TTPH might be a better candidate to consider taking a long position in.

Disclosure: None