Is GP Investments Acquisition Corp (GPIAU) A Good Stock To Buy?

Because GP Investments Acquisition Corp (NASDAQ:GPIAU) has faced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of fund managers who sold off their entire stakes last quarter. Interestingly, Nick Niell’s Arrowgrass Capital Partners cut the largest stake of all the hedgies tracked by Insider Monkey, valued at about $12.5 million in stock, and Matthew Halbower of Pentwater Capital Management was right behind this move, as the fund dropped about $8 million worth of shares. These moves are important to note, as total hedge fund interest fell by 1 funds last quarter.

Let’s go over hedge fund activity in other stocks similar to GP Investments Acquisition Corp (NASDAQ:GPIAU). We will take a look at INVUITY INC COM USD0.001 (NASDAQ:IVTY), StealthGas Inc. (NASDAQ:GASS), VirnetX Holding Corporation (NYSEAMEX:VHC), and Medallion Financial Corp (NASDAQ:TAXI). This group of stocks’ market caps match GPIAU’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $23 million, below the $50 million that hedge funds have collectively amassed in GPIAU. StealthGas Inc. (NASDAQ:GASS) is the most popular stock in this table with nine funds owning shares. On the other hand VirnetX Holding Corporation (NYSEAMEX:VHC) is the least popular one with only 5 bullish hedge fund positions. GP Investments Acquisition Corp (NASDAQ:GPIAU) 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 GASS might be a better candidate to consider investing in.