What Hedge Fund Sentiment Says About Hercules Technology Growth Capital Inc (HTGC)?

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Since Hercules Technology Growth Capital Inc (NYSE:HTGC) has experienced a bearish sentiment from hedge fund managers, we can see that there exists a select few fund managers who sold off their entire stakes by the end of the third quarter. Interestingly, Eric Halet and Davide Serra’s Algebris Investments sold off the largest stake of all the hedgies followed by Insider Monkey, worth about $4.4 million in stock, while Charles Clough of Clough Capital Partners was right behind this move, as the fund dropped about $0.9 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Hercules Technology Growth Capital Inc (NYSE:HTGC). These stocks are Rofin-Sinar Technologies (NASDAQ:RSTI), ADTRAN, Inc. (NASDAQ:ADTN), Luminex Corporation (NASDAQ:LMNX), and Harsco Corporation (NYSE:HSC). This group of stocks’ market values resemble HTGC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RSTI 16 90582 2
ADTN 11 66842 -1
LMNX 23 104104 1
HSC 17 68771 7

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $35 million in HTGC’s case. Luminex Corporation (NASDAQ:LMNX) is the most popular stock in this table, while ADTRAN, Inc. (NASDAQ:ADTN) is the least popular one with only 11 bullish hedge fund positions. Hercules Technology Growth Capital Inc (NYSE:HTGC) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LMNX might be a better candidate to consider a long position.

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