Is FutureFuel Corp. (FF) Worthy of Your Portfolio?

Because FutureFuel Corp. (NYSE:FF) has weathered falling interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few money managers who were dropping their full holdings in the third quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cashed in the largest stake of all the investors watched by Insider Monkey, worth about $1.6 million in stock, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital was right behind this move, as the fund sold off about $0.1 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as FutureFuel Corp. (NYSE:FF) but similarly valued. We will take a look at Hortonworks Inc (NASDAQ:HDP), Editas Medicine Inc (NASDAQ:EDIT), Live Oak Bancshares Inc (NASDAQ:LOB), and Bristow Group Inc (NYSE:BRS). This group of stocks’ market values are similar to FF’s market value.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $99 million, which is higher than the $42 million figure in FF’s case. Bristow Group Inc (NYSE:BRS) is the most popular stock in this table. On the other hand Live Oak Bancshares Inc (NASDAQ:LOB) is the least popular one with only four funds having reported long positions. FutureFuel Corp. (NYSE:FF) 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 Bristow Group Inc (NYSE:BRS) might be a better candidate to consider taking a long position in.

Disclosure: none