Is Bel Fuse, Inc. (BELFB) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Prescott Group Capital Management. 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 PEAK6 Capital Management).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Bel Fuse, Inc. (NASDAQ:BELFB) but similarly valued. We will take a look at Freshpet Inc (NASDAQ:FRPT), ChemoCentryx Inc (NASDAQ:CCXI), Nutraceutical Int’l Corp. (NASDAQ:NUTR), and Control4 Corp (NASDAQ:CTRL). All of these stocks’ market caps resemble BELFB’s market cap.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $35 million. That figure was $15 million in BELFB’s case. Control4 Corp (NASDAQ:CTRL) is the most popular stock in this table. On the other hand Nutraceutical Int’l Corp. (NASDAQ:NUTR) is the least popular one with only 4 bullish hedge fund positions. Bel Fuse, Inc. (NASDAQ:BELFB) 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 CTRL might be a better candidate to consider taking a long position in.

Disclosure: None