Now, according to many of your fellow readers, hedge funds are viewed as delayed, outdated financial vehicles of a forgotten age. Although there are more than 8,000 hedge funds in operation today, Insider Monkey aim at the crème de la crème of this club, close to 525 funds. Analysts calculate that this group controls most of all hedge funds’ total assets, and by keeping an eye on their highest quality picks, we’ve found a number of investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 33 percentage points in 11 months (see all of our picks from August).
Just as key, positive insider trading sentiment is another way to look at the stock market universe. Obviously, there are a number of reasons for an executive to get rid of shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the valuable potential of this tactic if “monkeys” know what to do (learn more here).
Now that that’s out of the way, it’s important to analyze the recent info about TCF Financial Corporation (NYSE:TCB).
What does the smart money think about TCF Financial Corporation (NYSE:TCB)?
Heading into Q3, a total of 17 of the hedge funds we track were bullish in this stock, a change of 113% from the first quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes considerably.
When using filings from the hedgies we track, Richard S. Pzena’s Pzena Investment Management had the most valuable position in TCF Financial Corporation (NYSE:TCB), worth close to $31.2 million, comprising 0.2% of its total 13F portfolio. Coming in second is Dreman Value Management, managed by David Dreman, which held a $12.5 million position; 0.4% of its 13F portfolio is allocated to the company. Remaining hedgies with similar optimism include Anil Stevens and Glenn Shapiro’s Parameter Capital Management, Dmitry Balyasny’s Balyasny Asset Management and Israel Englander’s Millennium Management.
Consequently, particular hedge funds were breaking ground themselves. Pzena Investment Management, managed by Richard S. Pzena, assembled the most valuable position in TCF Financial Corporation (NYSE:TCB). Pzena Investment Management had 31.2 million invested in the company at the end of the quarter. David Dreman’s Dreman Value Management also made a $12.5 million investment in the stock during the quarter. The following funds were also among the new TCB investors: Anil Stevens and Glenn Shapiro’s Parameter Capital Management, Dmitry Balyasny’s Balyasny Asset Management, and Israel Englander’s Millennium Management.
How are insiders trading TCF Financial Corporation (NYSE:TCB)?
Insider buying is particularly usable when the company in question has experienced transactions within the past six months. Over the last six-month time frame, TCF Financial Corporation (NYSE:TCB) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to TCF Financial Corporation (NYSE:TCB). These stocks are KeyCorp (NYSE:KEY), Oriental Financial Group Inc. (NYSE:OFG), Home Bancshares Inc (NASDAQ:HOMB), National Bank of Greece (ADR) (NYSE:NBG), and First Republic Bank (NYSE:FRC). This group of stocks are in the money center banks industry and their market caps are similar to TCB’s market cap.