Do Hedge Funds Love Sterling Bancorp (STL)?

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With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. Millennium Management, one of the 10 largest funds in the world, created the largest position in Sterling Bancorp (NYSE:STL). Millennium Management had $6.7 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $1.7 million position during the quarter. The following funds were also among the new STL investors: Paul Tudor Jones’ Tudor Investment Corp, Joel Greenblatt’s Gotham Asset Management, and Mike Vranos’ Ellington.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Sterling Bancorp (NYSE:STL) but similarly valued. We will take a look at Chemed Corporation (NYSE:CHE), Electronics For Imaging, Inc. (NASDAQ:EFII), Paylocity Holding Corp (NASDAQ:PCTY), and M/A-COM Technology Solutions Holdings (NASDAQ:MTSI). This group of stocks’ market values are similar to STL’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CHE 15 243945 -2
EFII 10 158491 0
PCTY 13 72004 4
MTSI 15 56196 0

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $133 million, which is higher than the $78 million figure in STL’s case. Chemed Corporation (NYSE:CHE) is the most popular stock in this table. On the other hand Electronics For Imaging, Inc. (NASDAQ:EFII) is the least popular one with only 10 funds holding shares. Sterling Bancorp (NYSE:STL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Chemed Corporation (NYSE:CHE) might be a better candidate to consider taking a long position in.

Disclosure: none

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