Is The Bank of New York Mellon Corporation (NYSE:BK) ready to raly soon? The smart money is taking a bullish view. The number of bullish hedge fund positions improved by 2 in recent months.
At the moment, there are a multitude of indicators investors can use to track publicly traded companies. A duo of the best are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the top investment managers can outpace the broader indices by a healthy margin (see just how much).
Just as key, bullish insider trading sentiment is another way to break down the stock market universe. Obviously, there are a number of incentives for a corporate insider to downsize shares of his or her company, but only one, very obvious reason why they would buy. Many academic studies have demonstrated the impressive potential of this method if you understand where to look (learn more here).
With all of this in mind, we’re going to take a gander at the recent action encompassing The Bank of New York Mellon Corporation (NYSE:BK).
How are hedge funds trading The Bank of New York Mellon Corporation (NYSE:BK)?
In preparation for this year, a total of 36 of the hedge funds we track were long in this stock, a change of 6% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were increasing their holdings significantly.
When looking at the hedgies we track, Mason Hawkins’s Southeastern Asset Management had the biggest position in The Bank of New York Mellon Corporation (NYSE:BK), worth close to $1.157 billion, comprising 5.1% of its total 13F portfolio. On Southeastern Asset Management’s heels is Jean-Marie Eveillard of First Eagle Investment Management, with a $627 million position; 0.3% of its 13F portfolio is allocated to the stock. Remaining hedge funds that are bullish include Warren Buffett’s Berkshire Hathaway, Martin Whitman’s Third Avenue Management and Donald Yacktman’s Yacktman Asset Management.
With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Ascend Capital, managed by Malcolm Fairbairn, initiated the most valuable position in The Bank of New York Mellon Corporation (NYSE:BK). Ascend Capital had 6 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also made a $3 million investment in the stock during the quarter. The other funds with new positions in the stock are Ray Dalio’s Bridgewater Associates, , and Paul Tudor Jones’s Tudor Investment Corp.
How are insiders trading The Bank of New York Mellon Corporation (NYSE:BK)?
Bullish insider trading is best served when the company in question has experienced transactions within the past six months. Over the latest half-year time period, The Bank of New York Mellon Corporation (NYSE:BK) has experienced zero unique insiders buying, and 9 insider sales (see the details of insider trades here).
With the results shown by the aforementioned time-tested strategies, retail investors should always monitor hedge fund and insider trading sentiment, and The Bank of New York Mellon Corporation (NYSE:BK) applies perfectly to this mantra.
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