Is Fuel Systems Solutions, Inc. (FSYS) Going to Burn These Hedge Funds?

Since Fuel Systems Solutions, Inc. (NASDAQ:FSYS) has faced falling interest from the smart money, we can see that there is a sect of funds that slashed their entire stakes heading into Q4. It’s worth mentioning that Cliff Asness’ AQR Capital Management sold off the biggest position of the “upper crust” of funds followed by Insider Monkey, totaling an estimated $0.2 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also cut its stock, about $0.1 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 3 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to Fuel Systems Solutions, Inc. (NASDAQ:FSYS). These stocks are Atlantic Coast Financial Corp (NASDAQ:ACFC), PharmAthene, Inc. (NYSEAMEX:PIP), OHA Investment Corp (NASDAQ:OHAI), and Pixelworks, Inc. (NASDAQ:PXLW). This group of stocks’ market caps match FSYS’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $11 million, compared to $17 million in FSYS’s case. Pixelworks, Inc. (NASDAQ:PXLW) is the most popular stock in this table, while Atlantic Coast Financial Corp (NASDAQ:ACFC) is the least popular one with only 4 bullish hedge fund positions. Fuel Systems Solutions, Inc. (NASDAQ:FSYS) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PXLW might be a better candidate to consider a long position.