3 Stocks Hedge Funds Just Bought; Should You?

The last stock for consideration has been on a downward trajectory like Gevo, hitting several new 52-week lows throughout the past couple months. However, just as a run of 52-week highs likely signals a stock is about to peak (or already has) in the short term, the same thinking generally applies to stocks on long slides. This makes them attractive investment targets, and a chance for investors to get in on companies which may still be attractive long-term, but for whatever reason have suffered or appear ready to suffer in the short term.

Such is the case for Moab Capital Partners, whose large investment in Quality Distribution, Inc. (NASDAQ:QLTY) indicates they believe the worst is over for the stock. Other investors seem to agree, as short interest on it has steadily declined over the past few months. Indeed, the turnaround may already be in its beginning stages, as the stock is up 10% already this week. Analysts at Stifel Nicolaus recently updated their rating on Quality Distribution, Inc. (NASDAQ:QLTY), which operates a North American chemical bulk tank truck network, to ‘Buy’, with a $15.00 price target. That price target represents a more than 50% premium over current trading levels.

No matter which stock you like, you can’t go wrong with monitoring and tracking the activity of a select few hedge funds. It’s the best way to have access to the vast pools of resources and analytical tools that the top funds use to generate their impressive returns, which is why we follow and report on all of their moves.

Disclosure: None