Is Xerium Technologies, Inc. (XRM) A Good Stock To Buy?

Judging by the fact that Xerium Technologies, Inc. (NYSE:XRM) has experienced a declining sentiment from hedge fund managers, logic holds that there was a specific group of fund managers who sold off their full holdings in the third quarter. Intriguingly, Michael Reeber’s Andalusian Capital Partners cut the largest investment of the “upper crust” of funds watched by Insider Monkey, totaling an estimated $1.1 million in stock, and Cliff Asness’ AQR Capital Management was right behind this move, as the fund cut about $0.2 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to Xerium Technologies, Inc. (NYSE:XRM). We will take a look at Utah Medical Products, Inc. (NASDAQ:UTMD), Genie Energy Ltd (NYSE:GNE), Hallador Energy Co (NASDAQ:HNRG), and DSP Group, Inc. (NASDAQ:DSPG). All of these stocks’ market caps are closest to Xerium Technologies, Inc. (NYSE:XRM)’s market cap.

As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $34 million in Xerium Technologies, Inc. (NYSE:XRM)’s case. Hallador Energy Co (NASDAQ:HNRG) is the most popular stock in this table. On the other hand, Utah Medical Products, Inc. (NASDAQ:UTMD) is the least popular one with only 4 bullish hedge fund positions. Xerium Technologies, Inc. (NYSE:XRM) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Hallador Energy Co (NASDAQ:HNRG) might be a better candidate to consider a long position.