In the 21st century investor’s toolkit, there are tons of gauges investors can use to analyze their holdings. A pair of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outpace the market by a significant margin (see just how much).
Equally as key, positive insider trading sentiment is a second way to break down the marketplace. As the old adage goes: there are many incentives for a bullish insider to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Many academic studies have demonstrated the impressive potential of this strategy if “monkeys” understand where to look (learn more here).
With these “truths” under our belt, it’s important to take a gander at the key action regarding Deutsche Bank AG (USA) (NYSE:DB).
How are hedge funds trading Deutsche Bank AG (USA) (NYSE:DB)?
Heading into 2013, a total of 11 of the hedge funds we track held long positions in this stock, a change of -15% from the previous quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were boosting their holdings substantially.
According to our comprehensive database, Odey Asset Management Group, managed by Crispin Odey, holds the largest position in Deutsche Bank AG (USA) (NYSE:DB). Odey Asset Management Group has a $18.4 million position in the stock, comprising 1.1% of its 13F portfolio. The second largest stake is held by Joe DiMenna of ZWEIG DIMENNA PARTNERS, with a $14.2 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Remaining peers that are bullish include Jim Chanos’s Kynikos, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.
Due to the fact that Deutsche Bank AG (USA) (NYSE:DB) has experienced declining sentiment from the aggregate hedge fund industry, we can see that there exists a select few funds that elected to cut their entire stakes last quarter. Interestingly, Rob Citrone’s Discovery Capital Management sold off the biggest investment of all the hedgies we key on, valued at about $13.9 million in stock., and John Fichthorn of Dialectic Capital Management was right behind this move, as the fund sold off about $4.3 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds last quarter.
Insider trading activity in Deutsche Bank AG (USA) (NYSE:DB)
Insider purchases made by high-level executives is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the latest six-month time frame, Deutsche Bank AG (USA) (NYSE:DB) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Deutsche Bank AG (USA) (NYSE:DB). These stocks are Banco Bradesco SA (ADR) (NYSE:BBD), Sumitomo Mitsui Financial Grp, Inc. (ADR) (NYSE:SMFG), ICICI Bank Limited (ADR) (NYSE:IBN), Mizuho Financial Group Inc. (ADR) (NYSE:MFG), and Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA). This group of stocks are in the foreign regional banks industry and their market caps are closest to DB’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Banco Bradesco SA (ADR) (NYSE:BBD) | 12 | 0 | 0 |
| Sumitomo Mitsui Financial Grp, Inc. (ADR) (NYSE:SMFG) | 8 | 0 | 0 |
| ICICI Bank Limited (ADR) (NYSE:IBN) | 15 | 0 | 0 |
| Mizuho Financial Group Inc. (ADR) (NYSE:MFG) | 5 | 0 | 0 |
| Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) | 4 | 0 | 0 |
With the returns exhibited by the aforementioned tactics, everyday investors should always monitor hedge fund and insider trading activity, and Deutsche Bank AG (USA) (NYSE:DB) is no exception.
