How Smart Money Ranks KVH Industries, Inc. (KVHI) Against Its Peers

We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: Manatuck Hill Partners. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Venator Capital Management).

Let’s now take a look at hedge fund activity in other stocks similar to KVH Industries, Inc. (NASDAQ:KVHI). These stocks are Genocea Biosciences Inc (NASDAQ:GNCA), Genie Energy Ltd (NYSE:GNE), Willdan Group, Inc. (NASDAQ:WLDN), and Fortress Biotech Inc (NASDAQ:FBIO). This group of stocks’ market valuations resemble KVHI’s market valuation.

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $7 million. That figure was $17 million in KVHI’s case. Genocea Biosciences Inc (NASDAQ:GNCA) is the most popular stock in this table. On the other hand Fortress Biotech Inc (NASDAQ:FBIO) is the least popular one with only 2 bullish hedge fund positions. KVH Industries, Inc. (NASDAQ:KVHI) is tied as the most popular stock in this group and has the most money invested in it of the 5. This is a positive signal, as we’d rather spend our time researching stocks that hedge funds are piling on. In this regard KVHI might be a good candidate to consider taking a long position in.

Disclosure: None