Is Waterstone Financial, Inc. (WSBF) A Good Stock To Buy?

As aggregate interest increased, key hedge funds have jumped into Waterstone Financial, Inc. (NASDAQ:WSBF) headfirst. Peter Rathjens,Bruce Clarke and John Campbell of Arrowstreet Capital created the biggest position in Waterstone Financial, Inc. (NASDAQ:WSBF). Arrowstreet Capital had $0.3 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $0.2 million position during the quarter. The only other fund with a brand new WSBF position is Chao Ku’s Nine Chapters Capital Management.

Let’s also examine hedge fund activity in other stocks similar to Waterstone Financial, Inc. (NASDAQ:WSBF). These stocks are Seres Therapeutics Inc (NASDAQ:MCRB), NN, Inc. (NASDAQ:NNBR), First Financial Corp (NASDAQ:THFF), and Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL). This group of stocks’ market caps are similar to WSBF’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MCRB 13 25183 -4
NNBR 7 46591 1
THFF 5 7444 0
AOSL 15 50869 3

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $33 million. That figure was $85 million in WSBF’s case. Alpha and Omega Semiconductor Ltd (NASDAQ:AOSL) is the most popular stock in this table. On the other hand First Financial Corp (NASDAQ:THFF) is the least popular one with only 5 bullish hedge fund positions. Waterstone Financial, Inc. (NASDAQ:WSBF) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AOSL might be a better candidate to consider taking a long position in.

Disclosure: None