Billionaire hedge fund managers such as Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks.
Is M&T Bank Corporation (NYSE:MTB) a superb investment right now? Prominent investors are taking an optimistic view. The number of long hedge fund positions advanced by 4 lately. At the end of this article we will also compare MTB to other stocks including Deutsche Bank AG (USA) (NYSE:DB), Nielsen Hldg NV (NYSE:NLSN), and Level 3 Communications, Inc. (NYSE:LVLT) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
How have hedgies been trading M&T Bank Corporation (NYSE:MTB)?
Heading into the fourth quarter of 2016, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a rise of 22% from the second quarter of 2016, pushing the stock’s ownership among hedgies to a yearly high. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Warren Buffett’s Berkshire Hathaway has the biggest position in M&T Bank Corporation (NYSE:MTB), worth close to $624.9 million. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $55.8 million position. Remaining hedge funds and institutional investors that hold long positions encompass Cliff Asness’ AQR Capital Management, Mario Gabelli’s GAMCO Investors and Francois Rochon’s Giverny Capital.