Is Calamos Asset Management, Inc (CLMS) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Springbok Capital. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case here because none of the 700+ hedge funds tracked by Insider Monkey identified CLMS as a viable investment and initiated a position in the stock.

Let’s go over hedge fund activity in other stocks similar to Calamos Asset Management, Inc (NASDAQ:CLMS). These stocks are Castle Brands Inc (NYSEAMEX:ROX), Westfield Financial, Inc. (NASDAQ:WFD), Radiant Logistics, Inc. (NYSEAMEX:RLGT), and Aspen Aerogels Inc (NYSE:ASPN). This group of stocks’ market caps resemble CLMS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ROX 6 1201 1
WFD 4 24395 0
RLGT 7 9367 1
ASPN 4 8274 0

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $17 million in CLMS’s case. Radiant Logistics, Inc. (NYSEAMEX:RLGT) is the most popular stock in this table. On the other hand Westfield Financial, Inc. (NASDAQ:WFD) is the least popular one with only 4 bullish hedge fund positions. Calamos Asset Management, Inc (NASDAQ:CLMS) 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 RLGT might be a better candidate to consider taking a long position in.

Disclosure: none.