Bank of America Corp (BAC): Are Hedge Funds Right About This Stock?

Bank of America Corp (NYSE:BAC) shareholders likely pay attention to earnings reports, analyst recommendations, and macroeconomic projections when forming their investment theses, but a couple indicators that should also be watched are: hedge fund sentiment and insider trading activity. At Insider Monkey, our research has shown that both strategies have market-beating potential, and our best tactics can be put to use in your portfolio today (see how here).

Keeping this in mind, let’s take a walk through some of the latest moves made by the smart money and corporate insiders at Bank of America Corp (NYSE:BAC).

Hedge fund activity in Bank of America Corp (NYSE:BAC)

At the end of the fourth quarter, a total of 93 of the hedge funds we track held long positions in this stock, a change of Change 1% from the previous quarter. With hedge funds’ sentiment swirling, some notable hedge fund managers were upping their stakes considerably.

Arrowstreet Capital increased his stake by a total of 3703%, the largest of the funds we track. Gardner Russo & Gardner and Alphabet Management were also increasing their holdings, while Anchorage Advisors and Citadel Investment Group established new positions in the stock.

All in all, Fairholme (Fairx) held the largest position, ahead of peers Platinum Asset Management, Adage Capital Management, and Lansdowne Partners.

Insider trading activity in Bank of America Corp (NYSE:BAC)

Since the start of 2013, Bank of America Corp. has seen 1 insider purchase and 0 insider sales.

The latest insider purchase we have on record was a buy of 20,000 shares at an average price of $11.53 a piece. David R Yost made this transaction, and now holds 44,153 shares after the move.

With the results demonstrated by our time-tested strategies, retail investors should always pay attention to hedge fund and insider trading activity, and Bank of America Corp (NYSE:BAC) is no exception.

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Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

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