Is Silvercrest Asset Management Group Inc (SAMG) A Good Stock To Buy?

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We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified SAMG as a viable investment and initiated a position in the stock.

Let’s now review hedge fund activity in other stocks similar to Silvercrest Asset Management Group Inc (NASDAQ:SAMG). We will take a look at Gold Resource Corporation (NYSEMKT:GORO), Codexis, Inc. (NASDAQ:CDXS), LMI Aerospace, Inc. (NASDAQ:LMIA), and Abraxas Petroleum Corp. (NASDAQ:AXAS). All of these stocks’ market caps are closest to SAMG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GORO 7 4311 -4
CDXS 8 23078 -2
LMIA 7 33190 -1
AXAS 10 4115 2

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 $16 million, close to the $15 million in SAMG’s case. Abraxas Petroleum Corp. (NASDAQ:AXAS) is the most popular stock in this table. On the other hand Gold Resource Corporation (NYSEMKT:GORO) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Silvercrest Asset Management Group Inc (NASDAQ:SAMG) is even less popular than GORO. Considering that hedge funds aren’t fond of this stock in relation to other companies mentioned 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.

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