Is Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) a good investment?
To many investors, hedge funds are assumed to be useless, outdated financial vehicles of a period lost to current times. Although there are more than 8,000 hedge funds with their doors open today, Insider Monkey aim at the upper echelon of this club, about 525 funds. It is widely held that this group oversees the lion's share of the smart money's total capital, and by keeping an eye on their highest quality equity investments, we've unsheathed a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we've started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 33 percentage points in 11 months (explore the details and some picks here).
Just as key, positive insider trading activity is a second way to analyze the stock market universe. Just as you'd expect, there are a number of stimuli for a bullish insider to get rid of shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this method if piggybackers understand where to look (learn more here).
What's more, let's discuss the newest info for Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU).
Heading into Q3, a total of 14 of the hedge funds we track were bullish in this stock, a change of 75% from the first quarter. With the smart money's positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their holdings substantially.
When using filings from the hedgies we track, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU). Fisher Asset Management has a $53.8 million position in the stock, comprising 0.1% of its 13F portfolio. The second largest stake is held by Louis Bacon of Moore Global Investments, with a $9.2 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedgies with similar optimism include Jim Simons's Renaissance Technologies, D. E. Shaw's D E Shaw and David Dreman's Dreman Value Management.
As industrywide interest increased, certain money managers have jumped into Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) headfirst. Fisher Asset Management, managed by Ken Fisher, established the biggest position in Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU). Fisher Asset Management had 53.8 million invested in the company at the end of the quarter. Louis Bacon's Moore Global Investments also made a $9.2 million investment in the stock during the quarter. The other funds with brand new MTU positions are Jim Simons's Renaissance Technologies, D. E. Shaw's D E Shaw, and David Dreman's Dreman Value Management.
Insider buying made by high-level executives is at its handiest when the company we're looking at has seen transactions within the past half-year. Over the latest half-year time frame, Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also examine the relationship between both of these indicators in other stocks similar to Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU). These stocks are Bank of Montreal (USA) (NYSE:BMO), Citigroup Inc. (NYSE:C), Bank of America Corp (NYSE:BAC), The Bank of Nova Scotia (USA) (NYSE:BNS), and Toronto-Dominion Bank (USA) (NYSE:TD). All of these stocks are in the money center banks industry and their market caps are closest to MTU's market cap.