Is Blackrock Capital Investment Corp. (BKCC) Worthy of Your Portfolio?

Now, some big names have been driving this bullishness. HBK Investments, led by David Costen Haley, initiated the most valuable position in Blackrock Capital Investment Corp. (NASDAQ:BKCC). HBK Investments had $0.1 million invested in the company at the end of the quarter. Alec Litowitz and Ross Laser’s Magnetar Capital also made a $0.1 million investment in the stock during the quarter. The only other fund with a brand new BKCC position is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Blackrock Capital Investment Corp. (NASDAQ:BKCC) but similarly valued. We will take a look at CVR Partners LP (NYSE:UAN), FARO Technologies, Inc. (NASDAQ:FARO), Cryolife Inc (NYSE:CRY), and CBIZ, Inc. (NYSE:CBZ). This group of stocks’ market valuations match BKCC’s market valuation.

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 $39 million. That figure was $6 million in BKCC’s case. CBIZ, Inc. (NYSE:CBZ) is the most popular stock in this table. On the other hand CVR Partners LP (NYSE:UAN) is the least popular one with only four bullish hedge fund positions. Blackrock Capital Investment Corp. (NASDAQ:BKCC) 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 CBZ might be a better candidate to consider taking a long position in.

Disclosure: none