Seeing as S&W Seed Company (NASDAQ:SANW) has witnessed a bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedgies that slashed their full holdings heading into Q4. Intriguingly, Ken Griffin’s Citadel Investment Group cut the biggest stake of all the hedgies tracked by Insider Monkey, valued at about $0.1 million in stock. These moves are important to note, as aggregate hedge fund interest was cut by 1 fund heading into Q4.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as S&W Seed Company (NASDAQ:SANW) but similarly valued. We will take a look at Ocera Therapeutics Inc (NASDAQ:OCRX), AXT Inc (NASDAQ:AXTI), BlueLinx Holdings Inc. (NYSE:BXC), and RCS Capital Corp (NYSE:RCAP). This group of stocks’ market caps resemble S&W Seed Company (NASDAQ:SANW)’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see, these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $8 million in S&W Seed Company (NASDAQ:SANW)’s case. RCS Capital Corp (NYSE:RCAP) is the most popular stock in this table. On the other hand, AXT Inc (NASDAQ:AXTI) is the least popular one with only 4 bullish hedge fund positions. S&W Seed Company (NASDAQ:SANW) 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, RCS Capital Corp (NYSE:RCAP) might be a better candidate to consider a long position.