Should You Buy TESSCO Technologies, Inc. (TESS)?

Now, specific money managers have jumped into TESSCO Technologies, Inc. (NASDAQ:TESS) headfirst. Coe Capital Management initiated the most valuable position in TESSCO Technologies, Inc. (NASDAQ:TESS). Coe Capital Management had $0.6 million invested in the company at the end of the quarter. Nine Chapters Capital Management also made an $0.2 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as TESSCO Technologies, Inc. (NASDAQ:TESS) but similarly valued. These stocks are Cidara Therapeutics Inc (NASDAQ:CDTX), Inventure Foods Inc (NASDAQ:SNAK), EMCORE Corporation (NASDAQ:EMKR), and ProShares UltraShort Nasdaq Biotech (NASDAQ:BIS). All of these stocks’ market caps match TESS’s market cap.

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 $32 million. That figure was $27 million in TESS’s case. EMCORE Corporation (NASDAQ:EMKR) is the most popular stock in this table. On the other hand ProShares UltraShort Nasdaq Biotech (NASDAQ:BIS) is the least popular one with only 4 bullish hedge fund positions. TESSCO Technologies, Inc. (NASDAQ:TESS) 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 EMKR might be a better candidate to consider a long position.