Should You Buy The Bancorp, Inc. (TBBK)?

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Judging by the fact that The Bancorp, Inc. (NASDAQ:TBBK) has faced bearish sentiment from the smart money, it’s easy to see that there is a sect of money managers that elected to cut their entire stakes heading into Q4. Interestingly, Cliff Asness’s AQR Capital Management sold off the largest investment of the “upper crust” of funds monitored by Insider Monkey, totaling close to $0.1 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dumped its stock, about $0.1 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as The Bancorp, Inc. (NASDAQ:TBBK) but similarly valued. We will take a look at Telenav Inc (NASDAQ:TNAV), Eaton Vance Senior Income Trust (NYSE:EVF), Ultra Clean Holdings Inc (NASDAQ:UCTT), and Marlin Business Services Corp. (NASDAQ:MRLN). All of these stocks’ market caps resemble TBBK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TNAV 9 52911 -1
EVF 3 7103 -1
UCTT 13 25931 2
MRLN 7 63623 1

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 $37 million. That figure was $64 million in TBBK’s case. Ultra Clean Holdings Inc (NASDAQ:UCTT) is the most popular stock in this table. On the other hand Eaton Vance Senior Income Trust (NYSE:EVF) is the least popular one with only 3 bullish hedge fund positions. The Bancorp, Inc. (NASDAQ:TBBK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard UCTT might be a better candidate to consider taking a long position in.

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