Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards LegacyTexas Financial Group Inc (NASDAQ:LTXB).
Is LegacyTexas Financial Group Inc ready to rally soon? Prominent investors are reducing their bets on the stock. The number of bullish hedge fund bets went down by 1 in recent months. LTXB was in 10 hedge funds’ portfolios at the end of the third quarter of 2015. There were 11 hedge funds in our database with LTXB positions at the end of the previous quarter. At the end of this article we will also compare LTXB to other stocks including Synchronoss Technologies, Inc. (NASDAQ:SNCR), Greatbatch Inc (NYSE:GB), and Concordia Healthcare Corp (NASDAQ:CXRX) to get a better sense of its popularity.
Today there are tons of methods stock traders use to assess their stock investments. A duo of the most under-the-radar methods are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best money managers can outclass the market by a solid margin (see the details here).
Keeping this in mind, let’s take a glance at the fresh action regarding LegacyTexas Financial Group Inc (NASDAQ:LTXB).
Hedge fund activity in LegacyTexas Financial Group Inc (NASDAQ:LTXB)
At the Q3’s end, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -9% from the second quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Renaissance Technologies holds the biggest position in LegacyTexas Financial Group Inc (NASDAQ:LTXB). Renaissance Technologies has a $42.4 million position in the stock, comprising 0.1% of its 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which holds a $14 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other members of the smart money that are bullish encompass Legg Mason Capital Management, William Black’s Consector Capital and Joseph A. Jolson’s Harvest Capital Strategies.