Southern National Banc. of Virginia, Inc (SONA): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, specific money managers have jumped into Southern National Banc. of Virginia, Inc (NASDAQ:SONA) headfirst. Cove Street Capital assembled the largest position in Southern National Banc. of Virginia, Inc (NASDAQ:SONA). According to its latest 13F filing, the fund had $0.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.2 million position during the quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Southern National Banc. of Virginia, Inc (NASDAQ:SONA) but similarly valued. We will take a look at Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH), Cidara Therapeutics Inc (NASDAQ:CDTX), Enzymotec Ltd (NASDAQ:ENZY), and GigOptix Inc (NYSEAMEX:GIG). This group of stocks’ market caps resemble SONA’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $8 million in SONA’s case. Cidara Therapeutics Inc (NASDAQ:CDTX) is the most popular stock in this table. On the other hand Blue Capital Reinsurance Holdings Ltd (NYSE:BCRH) is the least popular one with only 4 bullish hedge fund positions. Southern National Banc. of Virginia, Inc (NASDAQ:SONA) 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 CDTX might be a better candidate to consider taking a long position in.

Disclosure: none.