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Capitol Federal Financial, Inc. (NASDAQ:CFFN): Are Hedge Funds Right About This Stock?

Capitol Federal Financial, Inc. (NASDAQ:CFFN) was in 17 hedge funds’ portfolio at the end of December. CFFN shareholders have witnessed an increase in activity from the world’s largest hedge funds recently. There were 14 hedge funds in our database with CFFN holdings at the end of the previous quarter.

According to most stock holders, hedge funds are perceived as unimportant, old investment vehicles of the past. While there are greater than 8000 funds with their doors open at the moment, we at Insider Monkey hone in on the masters of this group, about 450 funds. Most estimates calculate that this group oversees the majority of all hedge funds’ total asset base, and by monitoring their highest performing equity investments, we have found a number of investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).

Capitol Federal Financial, Inc. (NASDAQ:CFFN)

Equally as key, positive insider trading sentiment is a second way to break down the world of equities. There are a number of motivations for a corporate insider to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Plenty of academic studies have demonstrated the useful potential of this method if shareholders know where to look (learn more here).

Now, we’re going to take a gander at the key action surrounding Capitol Federal Financial, Inc. (NASDAQ:CFFN).

What does the smart money think about Capitol Federal Financial, Inc. (NASDAQ:CFFN)?

Heading into 2013, a total of 17 of the hedge funds we track were long in this stock, a change of 21% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their stakes significantly.

According to our comprehensive database, Jim Simons’s Renaissance Technologies had the most valuable position in Capitol Federal Financial, Inc. (NASDAQ:CFFN), worth close to $48 million, accounting for 0.1% of its total 13F portfolio. The second largest stake is held by Ken Fisher of Fisher Asset Management, with a $16 million position; the fund has 0% of its 13F portfolio invested in the stock. Some other peers that are bullish include Howard Guberman’s Gruss Asset Management, John Overdeck and David Siegel’s Two Sigma Advisors and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Now, key hedge funds have jumped into Capitol Federal Financial, Inc. (NASDAQ:CFFN) headfirst. Fisher Asset Management, managed by Ken Fisher, established the largest position in Capitol Federal Financial, Inc. (NASDAQ:CFFN). Fisher Asset Management had 16 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $6 million investment in the stock during the quarter. The other funds with brand new CFFN positions are Glenn Russell Dubin’s Highbridge Capital Management, Steven Cohen’s SAC Capital Advisors, and Paul Tudor Jones’s Tudor Investment Corp.

How are insiders trading Capitol Federal Financial, Inc. (NASDAQ:CFFN)?

Bullish insider trading is at its handiest when the company in question has seen transactions within the past six months. Over the latest six-month time period, Capitol Federal Financial, Inc. (NASDAQ:CFFN) has seen zero unique insiders purchasing, and 1 insider sales (see the details of insider trades here).

With the results demonstrated by our tactics, retail investors must always monitor hedge fund and insider trading sentiment, and Capitol Federal Financial, Inc. (NASDAQ:CFFN) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

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