Is Jason Industries Inc (JASN) A Good Stock To Buy?

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We have been waiting for this for a year and finally the third quarter ended up showing a nice bump in the performance of small-cap stocks. Both the S&P 500 and Russell 2000 were up since the end of the second quarter, but small-cap stocks outperformed the large-cap stocks by double digits. This is important for hedge funds, which are big supporters of small-cap stocks, because their investors started pulling some of their capital out due to poor recent performance. It is very likely that equity hedge funds will deliver better risk adjusted returns in the second half of this year. In this article we are going to look at how this recent market trend affected the sentiment of hedge funds towards Jason Industries Inc (NASDAQ:JASN) , and what that likely means for the prospects of the company and its stock.

Jason Industries Inc (NASDAQ:JASN) has experienced an increase in activity from the world’s largest hedge funds recently. There were 11 hedge funds in our database with JASN positions at the end of September. At the end of this article we will also compare JASN to other stocks including TransAtlantic Petroleum Ltd (NYSEAMEX:TAT), Intermolecular Inc (NASDAQ:IMI), and Verastem Inc (NASDAQ:VSTM) to get a better sense of its popularity.

Follow Jason Industries Inc. (NASDAQ:JASN)

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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With all of this in mind, we’re going to view the key action surrounding Jason Industries Inc (NASDAQ:JASN).

What does the smart money think about Jason Industries Inc (NASDAQ:JASN)?

At Q3’s end, a total of 11 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards JASN over the last 5 quarters. With the smart money’s sentiment swirling, there exists an “upper tier” of key hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).

JASN Chart

When looking at the institutional investors followed by Insider Monkey, Wynnefield Capital, led by Nelson Obus, holds the largest position in Jason Industries Inc (NASDAQ:JASN). Wynnefield Capital has a $9.3 million position in the stock, comprising 3.1% of its 13F portfolio. The second most bullish fund manager is Scopus Asset Management, led by Alexander Mitchell, holding a $3.4 million call position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds and institutional investors with similar optimism comprise Ahmet Okumus’s Okumus Fund Management, Stephen Loukas, David A. Lorber, Zachary George’s FrontFour Capital Group and Alexander Mitchell’s Scopus Asset Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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