In today’s marketplace, there are a multitude of gauges market participants can use to watch the equity markets. A pair of the most useful are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the top money managers can outclass the market by a very impressive amount (see just how much).
Just as necessary, optimistic insider trading sentiment is a second way to analyze the marketplace. Just as you’d expect, there are a variety of stimuli for an insider to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this strategy if shareholders know what to do (learn more here).
Furthermore, it’s important to discuss the latest info about Toronto-Dominion Bank (USA) (NYSE:TD).
What does the smart money think about Toronto-Dominion Bank (USA) (NYSE:TD)?
In preparation for the third quarter, a total of 11 of the hedge funds we track were long in this stock, a change of 10% from the first quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes considerably.
According to our 13F database, Daniel Bubis’s Tetrem Capital Management had the largest position in Toronto-Dominion Bank (USA) (NYSE:TD), worth close to $219.9 million, accounting for 7.4% of its total 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $35.2 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedgies that hold long positions include Matthew Hulsizer’s PEAK6 Capital Management, Ken Fisher’s Fisher Asset Management and Ken Griffin’s Citadel Investment Group.
With a general bullishness amongst the titans, certain money managers were leading the bulls’ herd. Tetrem Capital Management, managed by Daniel Bubis, established the most valuable position in Toronto-Dominion Bank (USA) (NYSE:TD). Tetrem Capital Management had 219.9 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $35.2 million position during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management, Ken Fisher’s Fisher Asset Management, and Ken Griffin’s Citadel Investment Group.
Insider trading activity in Toronto-Dominion Bank (USA) (NYSE:TD)
Bullish insider trading is at its handiest when the company in question has seen transactions within the past half-year. Over the latest six-month time period, Toronto-Dominion Bank (USA) (NYSE:TD) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Toronto-Dominion Bank (USA) (NYSE:TD). These stocks are Bank of Montreal (USA) (NYSE:BMO), Citigroup Inc. (NYSE:C), Bank of America Corp (NYSE:BAC), Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU), and The Bank of Nova Scotia (USA) (NYSE:BNS). This group of stocks are the members of the money center banks industry and their market caps resemble TD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Bank of Montreal (USA) (NYSE:BMO) | 11 | 0 | 0 |
| Citigroup Inc. (NYSE:C) | 121 | 0 | 0 |
| Bank of America Corp (NYSE:BAC) | 85 | 0 | 0 |
| Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) | 14 | 0 | 0 |
| The Bank of Nova Scotia (USA) (NYSE:BNS) | 9 | 0 | 0 |
Using the returns demonstrated by the previously mentioned research, average investors must always watch hedge fund and insider trading sentiment, and Toronto-Dominion Bank (USA) (NYSE:TD) applies perfectly to this mantra.
