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Is First Foundation Inc (FFWM) a Good Stock to Buy?

Seeing as First Foundation Inc (NASDAQ:FFWM) has sustained falling interest from the smart money, it’s easy to see that there was a specific group of hedge funds who sold off their entire stakes in the third quarter. Interestingly, Emanuel J. Friedman’s EJF Capital sold off the largest investment of all the investors followed by Insider Monkey, worth about $5.2 million in stock. Renaissance Technologies, one of the largest hedge funds in the world, also said goodbye to its stock, about $0.7 million worth.

Let’s check out hedge fund activity in other stocks similar to First Foundation Inc (NASDAQ:FFWM). We will take a look at Resource Capital Corp. (NYSE:RSO), BP Prudhoe Bay Royalty Trust (NYSE:BPT), National Research Corp (NASDAQ:NRCIA), and IDT Corporation (NYSE:IDT). This group of stocks’ market valuations resemble FFWM’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RSO 2 944 0
BPT 2 484 0
NRCIA 3 16429 -1
IDT 10 40454 0

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $41 million in FFWM’s case. IDT Corporation (NYSE:IDT) is the most popular stock in this table. On the other hand Resource Capital Corp. (NYSE:RSO) is the least popular one with only 2 bullish hedge fund positions. First Foundation Inc (NASDAQ:FFWM) 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 IDT might be a better candidate to consider taking a long position in.

Disclosure: None