How Pennantpark Floating Rate Capital Ltd (PFLT) Stacks Up Against Its Peers

With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Millennium Management, led by Israel Englander, initiated the most outsized position in Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT). Millennium Management had $0.4 million invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT) but similarly valued. We will take a look at Pier 1 Imports, Inc. (NYSE:PIR), Computer Programs & Systems, Inc. (NASDAQ:CPSI), Heritage Commerce Corp. (NASDAQ:HTBK), and Trevena Inc (NASDAQ:TRVN). This group of stocks’ market values match PFLT’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PIR 18 77201 -4
CPSI 7 36718 -6
HTBK 7 11636 -1
TRVN 10 32645 0

As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was $10 million in PFLT’s case. Pier 1 Imports, Inc. (NYSE:PIR) is the most popular stock in this table. On the other hand Computer Programs & Systems, Inc. (NASDAQ:CPSI) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT) is even less popular than CPSI. 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.