At the moment, there are a multitude of metrics investors can use to watch Mr. Market. A couple of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top fund managers can outclass their index-focused peers by a very impressive amount (see just how much).
Equally as useful, bullish insider trading sentiment is another way to analyze the world of equities. There are plenty of stimuli for a bullish insider to cut shares of his or her company, but only one, very clear reason why they would buy. Several academic studies have demonstrated the useful potential of this tactic if piggybackers understand what to do (learn more here).
What's more, it's important to discuss the latest info for National Bank Holdings Corp (NYSE:NBHC).
At the end of the second quarter, a total of 16 of the hedge funds we track were long in this stock, a change of -24% from the previous quarter. With hedgies' sentiment swirling, there exists an "upper tier" of noteworthy hedge fund managers who were upping their stakes meaningfully.
Out of the hedge funds we follow, Paul Singer's Elliott Management had the most valuable position in National Bank Holdings Corp (NYSE:NBHC), worth close to $74.1 million, accounting for 1.4% of its total 13F portfolio. On Elliott Management's heels is Paulson & Co, managed by John Paulson, which held a $42.9 million position; 0.3% of its 13F portfolio is allocated to the company. Some other hedgies with similar optimism include Frank Brosens's Taconic Capital, Jamie Zimmerman's Litespeed Management and Clint Carlson's Carlson Capital.
Judging by the fact that National Bank Holdings Corp (NYSE:NBHC) has experienced dropping sentiment from the entirety of the hedge funds we track, it's safe to say that there is a sect of funds that elected to cut their entire stakes at the end of the second quarter. At the top of the heap, Andrew J. M. Spokes's Farallon Capital sold off the biggest stake of all the hedgies we track, valued at an estimated $36.5 million in stock, and Michael Lowenstein of Kensico Capital was right behind this move, as the fund said goodbye to about $20.2 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 5 funds at the end of the second quarter.
Legal insider trading, particularly when it's bullish, is best served when the primary stock in question has seen transactions within the past 180 days. Over the latest six-month time period, National Bank Holdings Corp (NYSE:NBHC) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We'll also take a look at the relationship between both of these indicators in other stocks similar to National Bank Holdings Corp (NYSE:NBHC). These stocks are Chemical Financial Corporation (NASDAQ:CHFC), Park National Corporation (NYSEAMEX:PRK), Citizens Republic Bancorp Inc (NASDAQ:CRBC), First Midwest Bancorp Inc (NASDAQ:FMBI), and First Financial Bancorp (NASDAQ:FFBC). All of these stocks are in the regional - midwest banks industry and their market caps are similar to NBHC's market cap.