Are Hedge Funds Out to Lunch on Gevo, Inc. (GEVO)?

As aggregate interest increased, key hedge funds have been driving this bullishness. Connective Capital Management assembled the biggest position in Gevo, Inc. (NASDAQ:GEVO). Louis Bacon’s Moore Global Investments also initiated a $0.1 million position during the quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Gevo, Inc. (NASDAQ:GEVO) but similarly valued. We will take a look at AEterna Zentaris Inc. (USA) (NASDAQ:AEZS), EnteroMedics Inc (NASDAQ:ETRM), Biodel Inc (NASDAQ:BIOD), and Rubicon Technology, Inc. (NASDAQ:RBCN). This group of stocks’ market caps are similar to GEVO’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 $4 million. That figure was $11 million in GEVO’s case. Biodel Inc (NASDAQ:BIOD) is the most popular stock in this table. On the other hand AEterna Zentaris Inc. (USA) (NASDAQ:AEZS) is the least popular one with only 4 bullish hedge fund positions. Gevo, Inc. (NASDAQ:GEVO) is not the most popular stock in this group but hedge fund interest is still above average and there is more money invested in it than in any of the other stocks. This is a positive signal and makes Gevo a good candidate to consider a long position in, especially with the stock now even cheaper.