Is Kinsale Capital Group Inc (KNSL) Going to Burn These Hedge Funds?

Since all hedge fund positions in Kinsale Capital Group Inc (NASDAQ:KNSL) were new, clearly Brant Point Investment Management and Canyon Capital Advisors established the biggest bets. Among the other bullish hedge funds, Mark Kingdon’s Kingdon Capital amassed $1.65 million worth of KNSL stock while Chuck Royce’s Royce & Associates built up a position that was worth $572,000 at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Kinsale Capital Group Inc (NASDAQ:KNSL). These stocks are Net 1 UEPS Technologies Inc (NASDAQ:UEPS), Haynes International, Inc. (NASDAQ:HAYN), NACCO Industries, Inc. (NYSE:NC), and Exar Corporation (NASDAQ:EXAR). This group of stocks’ market caps resemble KNSL’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was a meager $10 million in KNSL’s case. Net 1 UEPS Technologies Inc (NASDAQ:UEPS) is the most popular stock in this table. On the other hand NACCO Industries, Inc. (NYSE:NC) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Kinsale Capital Group Inc (NASDAQ:KNSL) is even less popular than NC. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None