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Hedge Funds Are Dumping Texas Capital Bancshares Inc (TCBI)

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. Intriguingly, Matthew Lindenbaum’s Basswood Capital said goodbye to the largest stake of all the hedgies followed by Insider Monkey, totaling close to $10.2 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund said goodbye to about $0.4 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Texas Capital Bancshares Inc (NASDAQ:TCBI). These stocks are Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL), BancorpSouth, Inc. (NYSE:BXS), SunPower Corporation (NASDAQ:SPWR), and Knight Transportation (NYSE:KNX). This group of stocks’ market values are closest to TCBI’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MPEL 16 370741 0
BXS 13 179968 -1
SPWR 18 52526 -1
KNX 9 34574 -1

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 $159 million. That figure was $256 million in TCBI’s case. SunPower Corporation (NASDAQ:SPWR) is the most popular stock in this table. On the other hand Knight Transportation (NYSE:KNX) is the least popular one with only 9 bullish hedge fund positions. Texas Capital Bancshares Inc (NASDAQ:TCBI) 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 SPWR might be a better candidate to consider taking a long position in.

 

Disclosure: None

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