Hedge Funds Aren’t Crazy About Deutsche Bank AG (USA) (DB) Anymore

Since Deutsche Bank AG (USA) (NYSE:DB) has faced a declination in interest from the smart money, it’s easy to see that there was a specific group of fund managers who sold off their entire stakes by the end of the third quarter. It’s worth mentioning that Michael Messner’s Seminole Capital (Investment Mgmt) cut the biggest stake of the 700 funds watched by Insider Monkey, valued at an estimated $7.8 million in stock. Porter Collins, Daniel Moses, and Vincent Daniel’s fund, Seawolf Capital, also said goodbye to its stock, about $5.4 million worth of shares. These moves are interesting, as total hedge fund interest dropped by 4 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Deutsche Bank AG (USA) (NYSE:DB) but similarly valued. These stocks are Anthem Inc (NYSE:ANTM), Public Storage (NYSE:PSA), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), and LIBERTY GLOBAL PLC (NASDAQ:LBTYK). This group of stocks’ market caps are similar to Deutsche Bank AG (USA) (NYSE:DB)’s market cap.

As you can see, these stocks had an average of 47 hedge funds with bullish positions and the average amount invested in these stocks was $3.24 billion. That figure was $133 million in Deutsche Bank AG (USA) (NYSE:DB)’s case. LIBERTY GLOBAL PLC (NASDAQ:LBTYK) is the most popular stock in this table. On the other hand, Public Storage (NYSE:PSA) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Deutsche Bank AG (USA) (NYSE:DB) is even less popular than Public Storage (NYSE:PSA). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.