Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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

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
OCRX 9 15385 -1
AXTI 4 9351 0
BXC 7 45941 -3
RCAP 15 16564 -4

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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.