Published on 24 Jun 2021 on Insider Monkey via Yahoo Finance

Is OFS Capital Corp (OFS) A Good Stock To Buy?

Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is OFS Capital Corp (NASDAQ:OFS), so let’s take a closer look at the sentiment that surrounds it in the current quarter.

Is OFS a good stock to buy? Investors who are in the know were taking a bullish view. The number of long hedge fund positions increased by 1 recently. OFS Capital Corp (NASDAQ:OFS) was in 3 hedge funds' portfolios at the end of March. The all time high for this statistic is 5. Our calculations also showed that OFS isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 2 hedge funds in our database with OFS positions at the end of the fourth quarter.

Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can't expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds' moves today.