Is Globe Specialty Metals, Inc. (GSM) A Good Stock To Buy?

Judging by the fact that Globe Specialty Metals, Inc. (NASDAQ:GSM) has witnessed a declination in interest from hedge fund managers, it’s easy to see that there exists a select few hedgies who were dropping their full holdings in the third quarter. It’s worth mentioning that Joshua Kaufman and Craig Nerenberg’s Brenner West Capital Partners sold off the largest stake of the 700 funds tracked by Insider Monkey, valued at about $10.7 million in stock. Noam Gottesman’s fund, GLG Partners, also dropped its stock, about $1.6 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 4 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to Globe Specialty Metals, Inc. (NASDAQ:GSM). We will take a look at Astronics Corporation (NASDAQ:ATRO), Advantage Oil & Gas Ltd (USA) (NYSE:AAV), TPG Specialty Lending Inc (NYSE:TSLX), and Continental Building Products Inc (NYSE:CBPX). This group of stocks’ market caps are similar to GSM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ATRO 19 32401 4
AAV 6 6871 -2
TSLX 6 7302 1
CBPX 23 121613 2

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $42 million. That figure was $239 million in GSM’s case. Continental Building Products Inc (NYSE:CBPX) is the most popular stock in this table. On the other hand Advantage Oil & Gas Ltd (USA) (NYSE:AAV) is the least popular one with only 6 bullish hedge fund positions. Along with CBPX, Globe Specialty Metals, Inc. (NASDAQ:GSM) is the most popular stock in this group and that makes it worth a closer look.