What Do Hedge Funds Think of Famous Dave’s of America, Inc. (DAVE)?

At the top of the heap, Gary Claar’s Claar Advisors said goodbye to the biggest stake of all the hedgies followed by Insider Monkey, worth about $0.7 million in stock, and Cliff Asness’s AQR Capital Management was right behind this move, as the fund dropped about $0.2 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to Famous Dave’s of America, Inc. (NASDAQ:DAVE). We will take a look at ADMA Biologics Inc (NASDAQ:ADMA), Taseko Mines Limited (USA) (NYSEMKT:TGB), XOMA Corp (NASDAQ:XOMA), and USA Technologies, Inc. (NASDAQ:USAT). This group of stocks’ market values are closest to DAVE’s market value.

As you can see these stocks had an average of 6.5 hedge funds with bullish positions and the average amount invested in these stocks was $16 million. That figure was $55 million in DAVE’s case. XOMA Corp (NASDAQ:XOMA) is the most popular stock in this table. On the other hand Taseko Mines Limited (USA) (NYSEMKT:TGB) is the least popular one with only 4 bullish hedge fund positions. Famous Dave’s of America, Inc. (NASDAQ:DAVE) 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 XOMA might be a better candidate to consider a long position.