Is Triumph Bancorp Inc (TBK) Going to Burn Investors?

We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Springbok Capital).

Let’s also examine hedge fund activity in other stocks similar to Triumph Bancorp Inc (NASDAQ:TBK). We will take a look at Peoples Utah Bancorp (NASDAQ:PUB), Calix Inc (NYSE:CALX), Ares Commercial Real Estate Corp (NYSE:ACRE), and Barrett Business Services, Inc. (NASDAQ:BBSI). This group of stocks’ market values resemble TBK’s market value.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $26 million. That figure was $24 million in TBK’s case. Calix Inc (NYSE:CALX) is the most popular stock in this table. On the other hand Peoples Utah Bancorp (NASDAQ:PUB) is the least popular one with only 4 bullish hedge fund positions. Triumph Bancorp Inc (NASDAQ:TBK) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CALX might be a better candidate to consider taking a long position in.

Disclosure: None