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.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

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

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!