Is South State Corporation (SSB) Worthy of Your Portfolio?

Because South State Corporation (NASDAQ:SSB) has faced declining sentiment from the aggregate hedge fund industry, logic holds that there is a sect of fund managers that slashed their positions entirely last quarter. It’s worth mentioning that Neil Chriss’ Hutchin Hill Capital sold off the largest investment of the 700 funds watched by Insider Monkey, valued at close to $4.6 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also sold off its stock, about $2.8 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to South State Corporation (NASDAQ:SSB). These stocks are RBC Bearings Incorporated (NASDAQ:ROLL), Forum Energy Technologies Inc (NYSE:FET), The Advisory Board Company (NASDAQ:ABCO), and Main Street Capital Corporation (NYSE:MAIN). This group of stocks’ market valuations resemble SSB’s market valuation.

As you can see these stocks had an average of 11 funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $47 million in SSB’s case. Forum Energy Technologies Inc (NYSE:FET) is the most popular stock in this table. On the other hand Main Street Capital Corporation (NYSE:MAIN) is the least popular one with only eight funds holding shares. South State Corporation (NASDAQ:SSB) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FET might be a better candidate to consider taking a long position in.

Disclosure: none