Is FBR & Co (FBRC) A Good Stock To Buy?

Due to the fact that FBR & Co (NASDAQ:FBRC) has experienced bearish sentiment from the smart money, it’s easy to see that there lies a certain “tier” of fund managers who were dropping their entire stakes last quarter. Interestingly, Israel Englander’s Millennium Management cashed in the biggest position of the 700 funds studied by Insider Monkey, valued at an estimated $0.2 million in stock. Paul Tudor Jones’s fund, Tudor Investment Corp, also dropped its stock, about $0.2 million worth of FBRC shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as FBR & Co (NASDAQ:FBRC) but similarly valued. These stocks are Catalyst Pharmaceutical Partners, Inc. (NASDAQ:CPRX), Perion Network Ltd (NASDAQ:PERI), SCYNEXIS Inc (NASDAQ:SCYX), and Dover Motorsports, Inc. (NYSE:DVD). All of these stocks’ market caps match FBRC’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $8 million in FBRC’s case. SCYNEXIS Inc (NASDAQ:SCYX) is the most popular stock in this table. On the other hand Perion Network Ltd (NASDAQ:PERI) is the least popular one with only 3 bullish hedge fund positions. FBR & Co (NASDAQ:FBRC) 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 SCYX might be a better candidate to consider taking a long position in.

Disclosure: None