ScanSource, Inc. (SCSC): Are Hedge Funds Right About This Stock?

As one would reasonably expect, key money managers have jumped into ScanSource, Inc. (NASDAQ:SCSC) headfirst. Gotham Asset Management initiated the most valuable position in ScanSource, Inc. (NASDAQ:SCSC). Gotham Asset Management had $4.5 million invested in the company at the end of the quarter. Millennium Management also made an $4.3 million investment in the stock during the quarter. The other funds with brand new SCSC positions are Neil Chriss’s Hutchin Hill Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ScanSource, Inc. (NASDAQ:SCSC) but similarly valued. These stocks are Boston Private Financial Hldg Inc (NASDAQ:BPFH), Rush Enterprises, Inc. (NASDAQ:RUSHA), and 1st Source Corporation (NASDAQ:SRCE). This group of stocks’ market caps are closest to SCSC’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $102 million in SCSC’s case. Boston Private Financial Hldg Inc (NASDAQ:BPFH) is the most popular stock in this table. On the other hand 1st Source Corporation (NASDAQ:SRCE) is the least popular one with only 5 bullish hedge fund positions. ScanSource, Inc. (NASDAQ:SCSC) 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 BPFH might be a better candidate to consider a long position.