Should You Buy Bravo Brio Restaurant Group, Inc. (BBRG)?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Scopus Asset Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Algert Coldiron Investors).

Let’s now review hedge fund activity in other stocks similar to Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG). We will take a look at VIVUS, Inc. (NASDAQ:VVUS), Marchex, Inc. (NASDAQ:MCHX), Ballard Power Systems Inc. (USA) (NASDAQ:BLDP), and Red Lion Hotels Corporation (NYSE:RLH). This group of stocks’ market values are similar to BBRG’s market value.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $15 million, versus $18 million in BBRG’s case. VIVUS, Inc. (NASDAQ:VVUS) is the most popular stock in this table with 11 funds reporting stakes. On the other hand, Ballard Power Systems Inc. (USA) (NASDAQ:BLDP) is the least popular one. Compared to these stocks, Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.