Is GSV Capital Corp (GSVC) A Good Stock To Buy?

Due to the fact that GSV Capital Corp (NASDAQ:GSVC) has faced a declining sentiment from the smart money, logic holds that there exists a select few funds that elected to cut their entire stakes in the third quarter. Interestingly, D E Shaw cut the largest investment of all the hedgies tracked by Insider Monkey, comprising an estimated $0.2 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dumped its stock, about $0.2 million worth of shares. These moves are important to note, as aggregate hedge fund interest was cut by 1 fund in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as GSV Capital Corp (NASDAQ:GSVC) but similarly valued. These stocks are Five Star Quality Care, Inc. (NYSE:FVE), Exa Corp (NASDAQ:EXA), ASA Gold and Precious Metals Ltd (NYSE:ASA), and Gaiam, Inc. (NASDAQ:GAIA). This group of stocks’ market caps match GSV Capital Corp (NASDAQ:GSVC)’s market cap.

As you can see, these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $26 million. That figure was $3 million in GSV Capital Corp (NASDAQ:GSVC)’s case. Five Star Quality Care, Inc. (NYSE:FVE) is the most popular stock in this table. On the other hand, ASA Gold and Precious Metals Ltd (NYSE:ASA) is the least popular one with only 4 bullish hedge fund positions. GSV Capital Corp (NASDAQ:GSVC) 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, Five Star Quality Care, Inc. (NYSE:FVE) might be a better candidate to consider a long position.