Is Fidelity & Guaranty Life (FGL) a Good Stock to Buy?

Due to the fact that Fidelity & Guaranty Life (NYSE:FGL) has encountered bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers that slashed their full holdings last quarter. Intriguingly, James Dondero’s Highland Capital Management cut the biggest investment of all the investors tracked by Insider Monkey, totaling close to $6.1 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund sold off about $1.1 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Fidelity & Guaranty Life (NYSE:FGL). These stocks are The St. Joe Company (NYSE:JOE), Group 1 Automotive, Inc. (NYSE:GPI), ServisFirst Bancshares, Inc. (NASDAQ:SFBS), and Acceleron Pharma Inc (NASDAQ:XLRN). All of these stocks’ market caps are closest to FGL’s market cap.

As you can see these stocks had an average of 15 funds with bullish positions and the average amount invested in these stocks was $234 million, versus $107 million in FGL’s case. Acceleron Pharma Inc (NASDAQ:XLRN) is the most popular stock in this table. On the other hand ServisFirst Bancshares, Inc. (NASDAQ:SFBS) is the least popular one with only six bullish hedge fund positions. Fidelity & Guaranty Life (NYSE:FGL) 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 Acceleron Pharma Inc (NASDAQ:XLRN) might be a better candidate to consider taking a long position in.

Disclosure: none