Is America’s Car-Mart, Inc. (CRMT) Worthy of Your Portfolio?

As aggregate interest increased, key money managers were leading the bulls’ herd. Renaissance Technologies, one of the largest hedge funds in the world, assembled the largest position in America’s Car-Mart, Inc. (NASDAQ:CRMT). Renaissance Technologies had $0.4 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.2 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as America’s Car-Mart, Inc. (NASDAQ:CRMT) but similarly valued. We will take a look at NVE Corporation (NASDAQ:NVEC), Foamix Pharmaceuticals Ltd (NASDAQ:FOMX), PHI Inc. (NASDAQ:PHIIK), and Zogenix, Inc. (NASDAQ:ZGNX). This group of stocks’ market values are similar to CRMT’s market value.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $83 million in CRMT’s case. Foamix Pharmaceuticals Ltd (NASDAQ:FOMX) is the most popular stock in this table. On the other hand NVE Corporation (NASDAQ:NVEC) is the least popular one with only 5 bullish hedge fund positions. America’s Car-Mart, Inc. (NASDAQ:CRMT) 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 FOMX might be a better candidate to consider taking a long position in.

Disclosure: None