Here is What Hedge Funds Think About AdCare Health Systems, Inc. (ADK)

As industrywide interest jumped, some big names have been driving this bullishness. GAMCO Investors, managed by Mario Gabelli, assembled the largest position in AdCare Health Systems, Inc. (NYSEMKT:ADK). GAMCO Investors had $0.4 million invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to AdCare Health Systems, Inc. (NYSEMKT:ADK). We will take a look at GULF COAST ULTRA DEEP RTY TR (OTCMKTS:GULTU), Ballantyne Strong Inc (NYSEMKT:BTN), OncoGenex Pharmaceuticals Inc (NASDAQ:OGXI), and Verastem Inc (NASDAQ:VSTM). This group of stocks’ market values are similar to ADK’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 $11 million, compared to $4 million in ADK’s case. GULF COAST ULTRA DEEP RTY TR (OTCMKTS:GULTU) is the most popular stock in this table, while Ballantyne Strong Inc (NYSEMKT:BTN) is the least popular one with only 4 bullish hedge fund positions. AdCare Health Systems, Inc. (NYSEMKT:ADK) 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 GULTU might be a better candidate to consider a long position.