Is BankUnited (BKU) Going to Burn These Hedge Funds?

Page 1 of 2

Is BankUnited (NYSE:BKU) a buy right now? Hedge funds are in an optimistic mood. The number of long hedge fund positions inched up by 5 recently.

BankUnited (NYSE:BKU)To the average investor, there are a multitude of methods shareholders can use to track their holdings. Two of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best fund managers can beat the market by a very impressive margin (see just how much).

Equally as integral, optimistic insider trading sentiment is a second way to parse down the world of equities. Obviously, there are a number of motivations for a corporate insider to drop shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the useful potential of this strategy if you understand where to look (learn more here).

With these “truths” under our belt, it’s important to take a gander at the key action surrounding BankUnited (NYSE:BKU).

What does the smart money think about BankUnited (NYSE:BKU)?

In preparation for this quarter, a total of 14 of the hedge funds we track were bullish in this stock, a change of 56% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their holdings meaningfully.

According to our comprehensive database, Wilbur Ross’s Invesco Private Capital (WL Ross) had the most valuable position in BankUnited (NYSE:BKU), worth close to $209.8 million, comprising 21.1% of its total 13F portfolio. The second largest stake is held by Centerbridge Partners, managed by Mark T. Gallogly, which held a $164.8 million position; 19.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism include John A. Levin’s Levin Capital Strategies, Jim Simons’s Renaissance Technologies and Chuck Royce’s Royce & Associates.

As aggregate interest increased, specific money managers were breaking ground themselves. Levin Capital Strategies, managed by John A. Levin, established the largest position in BankUnited (NYSE:BKU). Levin Capital Strategies had 24.1 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also made a $1.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Paul Tudor Jones’s Tudor Investment Corp, SAC Subsidiary’s Sigma Capital Management, and Joel Greenblatt’s Gotham Asset Management.

What do corporate executives and insiders think about BankUnited (NYSE:BKU)?

Insider trading activity, especially when it’s bullish, is most useful when the company we’re looking at has seen transactions within the past six months. Over the last six-month time period, BankUnited (NYSE:BKU) has seen zero unique insiders purchasing, and 11 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to BankUnited (NYSE:BKU). These stocks are WesBanco, Inc. (NASDAQ:WSBC), SCBT Financial Corporation (NASDAQ:SCBT), United Bankshares, Inc. (NASDAQ:UBSI), First Citizens BancShares Inc. (NASDAQ:FCNCA), and Synovus Financial Corp. (NYSE:SNV). This group of stocks are in the regional – mid-atlantic banks industry and their market caps are closest to BKU’s market cap.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!