Hedge Funds Are Buying CSW Industrials Inc (CSWI)

As industrywide interest jumped, some big names have been driving this bullishness. Jeffrey Bronchick of Cove Street Capital assembled the biggest position in CSW Industrials Inc (NASDAQ:CSWI). Cove Street Capital had $16.4 million invested in the company at the end of the quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as CSW Industrials Inc (NASDAQ:CSWI) but similarly valued. We will take a look at Aegean Marine Petroleum Network Inc. (NYSE:ANW), Tower International Inc (NYSE:TOWR), GenMark Diagnostics, Inc (NASDAQ:GNMK), and Enanta Pharmaceuticals Inc (NASDAQ:ENTA). This group of stocks’ market caps are similar to CSWI’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $71 million in CSWI’s case. Aegean Marine Petroleum Network Inc. (NYSE:ANW) is the most popular stock in this table. On the other hand GenMark Diagnostics, Inc (NASDAQ:GNMK) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks CSW Industrials Inc (NASDAQ:CSWI) is even less popular than GNMK. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None