Is Golub Capital BDC Inc (GBDC) A Good Stock To Buy?

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Due to the fact that Golub Capital BDC Inc (NASDAQ:GBDC) has encountered falling interest from the smart money, it’s safe to say that there exists a select few hedge funds that decided to sell off their full holdings by the end of the third quarter. It’s worth mentioning that First Eagle Investment Management cut the biggest investment of all the investors followed by Insider Monkey, totaling close to $6.2 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund dumped about $0.5 million worth of GBDC shares.

Let’s go over hedge fund activity in other stocks similar to Golub Capital BDC Inc (NASDAQ:GBDC). These stocks are Boise Cascade Co (NYSE:BCC), Grupo Supervielle SA -ADR (NYSE:SUPV), Marcus & Millichap Inc (NYSE:MMI), and Surgery Partners Inc (NASDAQ:SGRY). All of these stocks’ market caps match GBDC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BCC 15 50761 -1
SUPV 10 168359 0
MMI 12 100363 -1
SGRY 7 39106 -2

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 $90 million. That figure was $32 million in GBDC’s case. Boise Cascade Co (NYSE:BCC) is the most popular stock in this table. On the other hand Surgery Partners Inc (NASDAQ:SGRY) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Golub Capital BDC Inc (NASDAQ:GBDC) is even less popular than SGRY. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None

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