Do Hedge Funds Love KCAP Financial Inc (KCAP)?

Consequently, specific money managers have jumped into KCAP Financial Inc (NASDAQ:KCAP) headfirst. Craig Drill Capital created the largest position in KCAP Financial Inc (NASDAQ:KCAP). Craig Drill Capital had $0.1 million invested in the company at the end of the quarter. D E Shaw also initiated a $0.1 million position during the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as KCAP Financial Inc (NASDAQ:KCAP) but similarly valued. We will take a look at Veritex Holdings Inc (NASDAQ:VBTX), Mediwound Ltd (NASDAQ:MDWD), First Security Group Inc (NASDAQ:FSGI), and Numerex Corp. (NASDAQ:NMRX). This group of stocks’ market caps resemble KCAP Financial Inc (NASDAQ:KCAP)’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 $26 million. That figure was $7 million in KCAP Financial Inc (NASDAQ:KCAP)’s case. First Security Group Inc (NASDAQ:FSGI) is the most popular stock in this table. On the other hand, Mediwound Ltd (NASDAQ:MDWD) is the least popular one with only 5 bullish hedge fund positions. KCAP Financial Inc (NASDAQ:KCAP) 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, First Security Group Inc (NASDAQ:FSGI) might be a better candidate to consider a long position.