Hedge Funds Aren’t Crazy About Home Bancshares Inc (HOMB) Anymore

Home Bancshares Inc (NASDAQ:HOMB) was in 9 hedge funds’ portfolio at the end of the first quarter of 2013. HOMB has seen a decrease in hedge fund sentiment recently. There were 9 hedge funds in our database with HOMB positions at the end of the previous quarter.

Home Bancshares Inc (NASDAQ:HOMB)

At the moment, there are tons of methods shareholders can use to watch Mr. Market. A duo of the most useful are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can beat the broader indices by a healthy margin (see just how much).

Just as integral, optimistic insider trading sentiment is another way to parse down the world of equities. There are plenty of reasons for a bullish insider to sell shares of his or her company, but only one, very simple reason why they would buy. Various academic studies have demonstrated the useful potential of this tactic if “monkeys” know where to look (learn more here).

With these “truths” under our belt, we’re going to take a look at the key action surrounding Home Bancshares Inc (NASDAQ:HOMB).

How have hedgies been trading Home Bancshares Inc (NASDAQ:HOMB)?

Heading into Q2, a total of 9 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were upping their holdings substantially.

When looking at the hedgies we track, Cliff Asness’s AQR Capital Management had the biggest position in Home Bancshares Inc (NASDAQ:HOMB), worth close to $3.1 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $2.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other hedge funds that are bullish include Ken Griffin’s Citadel Investment Group, John Overdeck and David Siegel’s Two Sigma Advisors and Steven Cohen’s SAC Capital Advisors.

Because Home Bancshares Inc (NASDAQ:HOMB) has witnessed falling interest from the smart money, we can see that there were a few fund managers who sold off their positions entirely heading into Q2. It’s worth mentioning that Israel Englander’s Millennium Management sold off the largest position of the 450+ funds we monitor, valued at an estimated $1.4 million in stock., and Matthew Tewksbury of Stevens Capital Management was right behind this move, as the fund cut about $0.2 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Home Bancshares Inc (NASDAQ:HOMB)?

Insider purchases made by high-level executives is at its handiest when the company in question has seen transactions within the past six months. Over the last 180-day time period, Home Bancshares Inc (NASDAQ:HOMB) has seen zero unique insiders buying, and 6 insider sales (see the details of insider trades here).

With the returns shown by Insider Monkey’s tactics, everyday investors should always pay attention to hedge fund and insider trading activity, and Home Bancshares Inc (NASDAQ:HOMB) shareholders fit into this picture quite nicely.

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