Is Jernigan Capital Inc (JCAP) a Good Stock To Buy?

Reputable billionaire investors such as Nelson Peltz and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won’t accept your savings unless you commit at least $5 million) by pinpointing winning small-cap stocks. There is little or no publicly-available information at all on some of these small companies, which makes it hard for an individual investor to pin down a winner within the small-cap space. However, hedge funds and other big asset managers can do the due diligence and analysis for you instead, thanks to their highly-skilled research teams and vast resources to conduct an appropriate evaluation process. Looking for potential winners within the small-cap galaxy of stocks? We believe following the smart money is a good starting point.

Jernigan Capital Inc (NYSE:JCAP) was in 5 hedge funds’ portfolios at the end of the third quarter of 2015. JCAP investors should pay attention to an increase in hedge fund sentiment recently. There were 4 hedge funds in our database with JCAP holdings at the end of the previous quarter. At the end of this article we will also compare JCAP to other stocks including GTx, Inc. (NASDAQ:GTXI), Arowana Inc. Ordinary Shares (NASDAQ:ARWA), and Rick’s Cabaret Int’l, Inc (NASDAQ:RICK) to get a better sense of its popularity.

Keeping this in mind, let’s take a look at the key action regarding Jernigan Capital Inc (NYSE:JCAP).

How are hedge funds trading Jernigan Capital Inc (NYSE:JCAP)?

Heading into Q4, a total of 5 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 25% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Anand Parekh’s Alyeska Investment Group has the most valuable position in Jernigan Capital Inc (NYSE:JCAP), worth close to $4.5 million, corresponding to 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is J. Carlo Cannell of Cannell Capital, with a $1 million position; the fund has 0.4% of its 13F portfolio invested in the stock. Remaining members of the smart money that are bullish include Mark T. Gallogly’s Centerbridge Partners, Emanuel J. Friedman’s EJF Capital and Chuck Royce’s Royce & Associates.