Is Fifth Street Finance Corp. (FSC) A Good Investment Right Now?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Interestingly, Jean-Marie Eveillard’s First Eagle Investment Management dropped the largest position of the 700 funds monitored by Insider Monkey, worth about $0.5 million in Fifth Street Finance Corp. (NASDAQ:FSC) stock. Matthew Hulsizer’s fund, PEAK6 Capital Management, sold off its call options, worth about $0.3 million.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Fifth Street Finance Corp. (NASDAQ:FSC) but similarly valued. We will take a look at Southside Bancshares, Inc. (NASDAQ:SBSI), State Bank Financial Corp (NASDAQ:STBZ), Vascular Solutions, Inc. (NASDAQ:VASC), and Fox Factory Holding Corp (NASDAQ:FOXF). This group of stocks’ market caps are closest to FSC’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $15 million in FSC’s case. State Bank Financial Corp (NASDAQ:STBZ) is the most popular stock in this table. On the other hand Southside Bancshares, Inc. (NASDAQ:SBSI) is the least popular one with only 6 bullish hedge fund positions. Fifth Street Finance Corp. (NASDAQ:FSC) 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 STBZ might be a better candidate to consider taking a long position in.

Disclosure: none.