Hedge Funds Are Dumping Toronto-Dominion Bank (USA) (TD)

Since Toronto-Dominion Bank (USA) (NYSE:TD) has faced a declination in interest from the aggregate hedge fund industry, logic holds that there was a specific group of money managers that elected to cut their full holdings last quarter. At the top of the heap, Robert B. Gillam’s McKinley Capital Management dumped the biggest stake of the 700 funds monitored by Insider Monkey, comprising about $14.5 million in stock. Ray Carroll’s fund, Breton Hill Capital, also said goodbye to its stock, about $6.5 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 3 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Toronto-Dominion Bank (USA) (NYSE:TD). We will take a look at China Petroleum & Chemical Corp (ADR) (NYSE:SNP), U.S. Bancorp (NYSE:USB), UBS AG (USA) (NYSE:UBS), and Biogen Idec Inc. (NASDAQ:BIIB). All of these stocks’ market caps are similar to TD’s market cap.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $2.28 billion. That figure was $342 million in TD’s case. Biogen Idec Inc. (NASDAQ:BIIB) is the most popular stock in this table, while China Petroleum & Chemical Corp (ADR) (NYSE:SNP) is the least popular one with only 7 bullish hedge fund positions. Toronto-Dominion Bank (USA) (NYSE:TD) 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 BIIB might be a better candidate to consider a long position.