Is Capital Southwest Corporation (CSWC) A Good Stock To Buy According To Hedge Funds?

Consequently, specific money managers were breaking ground themselves. Cove Street Capital, led by Jeffrey Bronchick, initiated the largest position in Capital Southwest Corporation (NASDAQ:CSWC). Cove Street Capital had $0.4 million invested in the company at the end of the quarter. Adam Wright and Gary Kohler’s Blue Clay Capital also initiated a $0.3 million position during the quarter.

Let’s also examine hedge fund activity in other stocks similar to Capital Southwest Corporation (NASDAQ:CSWC). These stocks are Fluidigm Corporation (NASDAQ:FLDM), CSS Industries, Inc. (NYSE:CSS), Reis Inc (NASDAQ:REIS), and Quotient Ltd (NASDAQ:QTNT). This group of stocks’ market values match CSWC’s market value.

As you can see these stocks had an average of 6.25 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $41 million in CSWC’s case. Quotient Ltd (NASDAQ:QTNT) is the most popular stock in this table. On the other hand CSS Industries, Inc. (NYSE:CSS) is the least popular one with only 4 bullish hedge fund positions. Capital Southwest Corporation (NASDAQ:CSWC) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard QTNT might be a better candidate to consider taking a long position in.