Is Triangle Capital Corporation (TCAP) Going to Burn Investors?

As aggregate interest increased, some big names have jumped into Triangle Capital Corporation (NYSE:TCAP) headfirst. Raiff Partners initiated the largest position in Triangle Capital Corporation (NYSE:TCAP). David E. Shaw’s D E Shaw also made a $0.6 million investment in the stock during the quarter. The only other fund with a brand new TCAP position was Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Triangle Capital Corporation (NYSE:TCAP) but similarly valued. We will take a look at U.S. Physical Therapy, Inc. (NYSE:USPH), Griffon Corporation (NYSE:GFF), MINDBODY Inc (NASDAQ:MB), and Central Pacific Financial Corp. (NYSE:CPF). This group of stocks’ market caps are similar to TCAP’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $98 million. That figure was $9 million in TCAP’s case. MINDBODY Inc (NASDAQ:MB) is the most popular stock in this table. On the other hand Griffon Corporation (NYSE:GFF) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Triangle Capital Corporation (NYSE:TCAP) is even less popular than GFF. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None