It was a rough third quarter for many hedge funds, which were naturally unable to overcome the big dip in the broad market, as the S&P 500 fell by about 7% during the quarter. The Russell 2000, composed of smaller companies, performed even worse, trailing the S&P by about 14 percentage points between June 25 and October 30, as investors fled less-known quantities for safe havens. This was the case with hedge funds, who we heard were pulling money from the market amid the volatility, which included money from small-cap stocks, which they invest in at a higher rate than other investors. This action contributed to the greater decline in these stocks during the tumultuous period. We will study how this market volatility affected their sentiment towards Sterling Bancorp (NYSE:STL) during the quarter below.
Is Sterling Bancorp (NYSE:STL) worth your attention right now? The smart money is taking an optimistic view. The number of bullish hedge fund positions went up by 1 in recent months. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Diebold Incorporated (NYSE:DBD), Tootsie Roll Industries, Inc. (NYSE:TR), and Nimble Storage Inc (NYSE:NMBL) to gather more data points.
To most market participants, hedge funds are perceived as unimportant, old investment vehicles of years past. While there are over 8000 funds with their doors open at the moment, Our experts choose to focus on the crème de la crème of this group, around 700 funds. It is estimated that this group of investors orchestrate most of the hedge fund industry’s total asset base, and by watching their finest equity investments, Insider Monkey has formulated various investment strategies that have historically outstripped Mr. Market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
With all of this in mind, let’s take a glance at the fresh action encompassing Sterling Bancorp (NYSE:STL).
What have hedge funds been doing with Sterling Bancorp (NYSE:STL)?
At Q3’s end, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 5% from the second quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Matthew Lindenbaum’s Basswood Capital has the number one position in Sterling Bancorp (NYSE:STL), worth close to $50.8 million, accounting for 2.5% of its total 13F portfolio. The second largest stake is held by Endicott Management, led by Robert I. Usdan and Wayne K. Goldstein, holding a $36.4 million position; 13.5% of its 13F portfolio is allocated to the company. Some other members of the smart money that hold long positions consist of Lee Munder’s Lee Munder Capital Group, Phill Gross and Robert Atchinson’s Adage Capital Management and Neil Chriss’ Hutchin Hill Capital.