With the latest quarterly 13F filings having been released, Insider Monkey has done the hard work of parsing through the position changes among the collection of hedge funds in our database during the second quarter, 749 of which filed 13F’s for the June 30 reporting period.
In this article, we’ll take a closer look at five financial stocks, American International Group Inc (NYSE:AIG), PacWest Bancorp (NASDAQ:PACW), Bank of New York Mellon Corp (NYSE:BK), Allstate Corp (NYSE:ALL), and Blackhawk Network Holdings Inc (NASDAQ:HAWK), which the smart money became less bullish on between March 31 and June 30.
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#5 American International Group Inc (NYSE:AIG)
– Number of Hedge Fund Shareholders (as of June 30): 85
– Total Value of Hedge Funds’ Holdings (as of June 30): $7.28 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 12.30%
85 funds that we track owned shares of American International Group Inc (NYSE:AIG) at the end of the second quarter, down by nine funds from the end of the previous quarter. Although AIG is widely regarded as a core holding for many investors given its cheap price-to-book ratio and the quality of its business lines, some hedge funds may have sold the stock due to Britain’s decision to leave the EU on June 23. Given the strong U.S. economy and the upcoming interest rate hikes over the next few years, we wouldn’t be surprised to see some funds rotate back into the stock in the third quarter.
#4 PacWest Bancorp (NASDAQ:PACW)
– Number of Hedge Fund Shareholders (as of June 30): 15
– Total Value of Hedge Funds’ Holdings (as of June 30): $267.41 million
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 5.60%
The number of funds with positions in PacWest Bancorp (NASDAQ:PACW) fell by ten quarter-over-quarter to 15 at the end of June. Like AIG, some funds may have sold off their stake due to Britain’s Brexit decision on June 23. Because Britain decided to leave the EU, many investors thought the Federal Reserve would keep interest rates lower for longer to prevent any sort of serious damage to the U.S. economy, which will keep PacWest’s interest income lower. Ken Fisher‘s Fisher Asset Management lowered its stake in PacWest by 1% in the second quarter, to 2.14 milion shares at the end of June.
We’ll check out three more finance stocks that lost some favor with hedge funds in the June quarter on the next page.