Hedge Funds Are Dumping Meridian Bancorp, Inc. (EBSB)

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that got rid of their entire stakes in the stock during the third quarter. It’s worth mentioning that Matthew Hulsizer’s PEAK6 Capital Management got rid of the biggest investment of all the hedgies monitored by Insider Monkey, valued at about $0.3 million in stock, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital was right behind this move, as the fund dumped about $0 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Meridian Bancorp, Inc. (NASDAQ:EBSB) but similarly valued. These stocks are Energy Recovery, Inc. (NASDAQ:ERII), Raven Industries, Inc. (NASDAQ:RAVN), TCP Capital Corp (NASDAQ:TCPC), and Ambac Financial Group, Inc. (NASDAQ:AMBC). This group of stocks’ market valuations resemble EBSB’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $113 million in EBSB’s case. Ambac Financial Group, Inc. (NASDAQ:AMBC) is the most popular stock in this table. On the other hand TCP Capital Corp (NASDAQ:TCPC) is the least popular one with only 6 bullish hedge fund positions. Meridian Bancorp, Inc. (NASDAQ:EBSB) 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 AMBC might be a better candidate to consider taking a long position in.

Disclosure: None