Is Tristate Capital Holdings Inc (NASDAQ:TSC) A Good Stock To Buy?

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Because Tristate Capital Holdings Inc (NASDAQ:TSC) has gone through a declining sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedgies that elected to cut their full holdings by the end of the third quarter. It’s worth mentioning that Charles Paquelet’s Skylands Capital cashed in the biggest position of all the hedgies monitored by Insider Monkey, comprising close to $0.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dropped about $0.2 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Tristate Capital Holdings Inc (NASDAQ:TSC). These stocks are Powell Industries, Inc. (NASDAQ:POWL), Iconix Brand Group Inc (NASDAQ:ICON), Ocwen Financial Corporation (NYSE:OCN), and Boulevard Acquisition Corp II (NASDAQ:BLVD). This group of stocks’ market caps are similar to TSC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
POWL 14 49998 3
ICON 11 75907 -4
OCN 17 62994 1
BLVD 11 146114 0

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $50 million in TSC’s case. Ocwen Financial Corporation (NYSE:OCN) is the most popular stock in this table. On the other hand Iconix Brand Group Inc (NASDAQ:ICON) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Tristate Capital Holdings Inc (NASDAQ:TSC) is even less popular than ICON. 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None

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