Is Franklin Financial Network Inc (FSB) A Good Stock To Buy?

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Consequently, key hedge funds were leading the bulls’ herd. Driehaus Capital created the largest position in Franklin Financial Network Inc (NYSE:FSB). Arrowstreet Capital also initiated a $0.7 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management and Cliff Asness’ AQR Capital Management.

Let’s now review hedge fund activity in other stocks similar to Franklin Financial Network Inc (NYSE:FSB). We will take a look at Conyers Park Acquisition Corp. (NASDAQ:CPAA), Navigator Holdings Ltd (NYSE:NVGS), First Foundation Inc (NASDAQ:FFWM), and Resource Capital Corp. (NYSE:RSO). This group of stocks’ market caps are closest to FSB’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CPAA 19 241795 19
NVGS 9 182211 -7
FFWM 7 40805 -4
RSO 2 944 0

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $116 million. That figure was $6 million in FSB’s case. Conyers Park Acquisition Corp. (NASDAQ:CPAA) is the most popular stock in this table. On the other hand Resource Capital Corp. (NYSE:RSO) is the least popular one with only 2 bullish hedge fund positions. Franklin Financial Network Inc (NYSE:FSB) 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 CPAA might be a better candidate to consider taking a long position in.

Disclosure: None

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