Is Nuveen Credit Strategies Income Fund (JQC) A Good Buy?

With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Luminus Management, managed by Jonathan Barrett and Paul Segal, established the biggest position in Nuveen Credit Strategies Income Fund (NYSE:JQC). Luminus Management had $0.4 million invested in the company at the end of the quarter.

Let’s check out hedge fund activity in other stocks similar to Nuveen Credit Strategies Income Fund (NYSE:JQC). These stocks are Web.com Group Inc (NASDAQ:WEB), Wright Medical Group Inc (NASDAQ:WMGI), istar Inc (NYSE:STAR), and Bankrate Inc (NYSE:RATE). All of these stocks’ market caps match JQC’s market cap.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $281 million. That figure was $15 million in JQC’s case. Web.com Group Inc (NASDAQ:WEB) is the most popular stock in this table. On the other hand Bankrate Inc (NYSE:RATE) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Nuveen Credit Strategies Income Fund (NYSE:JQC) is even less popular than RATE. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.