Is S&W Seed Company (SANW) Going to Burn These Hedge Funds?

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Is S&W Seed Company (NASDAQ:SANW) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.

Is S&W Seed Company (NASDAQ:SANW) a sound investment today? Money managers are getting less bullish. The number of long hedge fund bets dropped by 1 in recent months. S&W Seed Company (NASDAQ:SANW) was in 5 hedge funds’ portfolios at the end of September. There were 6 hedge funds in our database with S&W Seed Company (NASDAQ:SANW) positions at the end of the previous quarter. The stock trading sentiment was quite similar to the hedge fund sentiment, as the shares of S&W Seed Company (NASDAQ:SANW) were down 5.74% during the quarter. We will find out more about the hedge funds that held positions in the company, at the end of September.

For an in-depth understanding of the hedge fund sentiment surrounding stocks with similar market caps, we will also compare S&W Seed Company (NASDAQ:SANW) to other stocks, including Ocera Therapeutics Inc (NASDAQ:OCRX), AXT Inc (NASDAQ:AXTI), and BlueLinx Holdings Inc. (NYSE:BXC) to get a better sense of its popularity.

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In the eyes of most stock holders, hedge funds are assumed to be underperforming, old financial vehicles of yesteryear. While there are greater than 8000 funds in operation at present, our experts look at the crème de la crème of this club, around 700 funds. These hedge fund managers direct the lion’s share of the hedge fund industry’s total asset base, and by keeping track of their finest investments, Insider Monkey has unsheathed several investment strategies that have historically beaten the market. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points per year for a decade in their back tests.

Keeping this in mind, we’re going to take a look at the key action encompassing S&W Seed Company (NASDAQ:SANW).

What have hedge funds been doing with S&W Seed Company (NASDAQ:SANW)?

At the end of the third quarter, a total of 5 of the hedge funds tracked by Insider Monkey were long this stock, a decline of 17% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, MFP Investors, managed by Michael Price, holds the most valuable position in S&W Seed Company (NASDAQ:SANW). MFP Investors has a $6 million position in the stock, comprising 0.9% of its 13F portfolio. Sitting at the No. 2 spot is Coe Capital Management, managed by Mark Coe, which holds a $0.8 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Other peers with similar optimism encompass Ken Grossman and Glen Schneider’s SG Capital Management, and Renaissance Technologies.

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