Is Federated National Holding Co (FNHC) A Good Stock To Buy?

Since Federated National Holding Co (NASDAQ:FNHC) has experienced bearish sentiment from hedge fund managers, we can see that there was a specific group of fund managers that decided to sell off their full holdings heading into Q4. Intriguingly, Jacob Gottlieb’s Visium Asset Management said goodbye to the biggest investment of all the investors monitored by Insider Monkey, comprising close to $0.2 million in stock. David E. Shaw’s fund, D E Shaw, also sold off its stock, about $0.2 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Federated National Holding Co (NASDAQ:FNHC) but similarly valued. We will take a look at Hawaiian Telcom HoldCo Inc (NASDAQ:HCOM), Nobilis Health Corp (NYSEMKT:HLTH), Beigene Ltd (ADR) (NASDAQ:BGNE), and Chimerix Inc (NASDAQ:CMRX). This group of stocks’ market valuations resemble FNHC’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $37 million in FNHC’s case. Beigene Ltd (ADR) (NASDAQ:BGNE) is the most popular stock in this table. On the other hand Nobilis Health Corp (NYSEMKT:HLTH) is the least popular one with only 6 bullish hedge fund positions. Federated National Holding Co (NASDAQ:FNHC) 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 BGNE might be a better candidate to consider taking a long position in.

Disclosure: None