Flagstar Bancorp Inc (FBC): Hedge Funds Are Snapping Up

With a general bullishness amongst the heavyweights, key money managers have jumped into Flagstar Bancorp Inc (NYSE:FBC) headfirst. Two Sigma Advisors, managed by John Overdeck and David Siegel, initiated the biggest position in Flagstar Bancorp Inc (NYSE:FBC), worth nearly $1.5 million at the end of the quarter. Chao Ku’s Nine Chapters Capital Management also made a $1.4 million investment in the stock during the quarter. The following funds were also among the new FBC investors: Cliff Asness’s AQR Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Lee Munder’s Lee Munder Capital Group.

Let’s check out hedge fund activity in other stocks similar to Flagstar Bancorp Inc (NYSE:FBC). These stocks are NIC Inc. (NASDAQ:EGOV), Smart & Final Stores Inc (NYSE:SFS), New Gold Inc. (USA) (NYSEMKT:NGD), and Exponent, Inc. (NASDAQ:EXPO). This group of stocks’ market valuations match FBC’s market valuation.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $66 million in FBC’s case, not a positive sign. NIC Inc. (NASDAQ:EGOV) is the most popular stock in this table, while Exponent, Inc. (NASDAQ:EXPO) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Flagstar Bancorp Inc (NYSE:FBC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.