Hedge Funds Pile Into Deutsche Bank AG (USA) (DB) At Opportunistic Time

Now, key hedge funds were leading the bulls’ herd. Citadel Investment Group assembled the largest call position in Deutsche Bank AG (USA) (NYSE:DB). Noam Gottesman’s GLG Partners also made a $3.9 million investment in the stock during the quarter. The other funds with brand new DB positions are Simon Sadler’s Segantii Capital, Dmitry Balyasny’s Balyasny Asset Management, and Bart Baum’s Ionic Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Deutsche Bank AG (USA) (NYSE:DB) but similarly valued. We will take a look at Nielsen Hldg NV (NYSE:NLSN), Level 3 Communications, Inc. (NYSE:LVLT), Moody’s Corporation (NYSE:MCO), and PACCAR Inc (NASDAQ:PCAR). This group of stocks’ market caps match DB’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NLSN 26 436451 -3
LVLT 49 2788737 1
MCO 34 4009791 0
PCAR 26 370727 0

As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $1.90 billion. That figure was $112 million in DB’s case. Level 3 Communications, Inc. (NYSE:LVLT) is the most popular stock in this table. On the other hand Nielsen Hldg NV (NYSE:NLSN) is the least popular one with only 26 bullish hedge fund positions. Compared to these stocks Deutsche Bank AG (USA) (NYSE:DB) is even less popular than NLSN. 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 though, as hedge funds tend to be underweight ADR/USA stocks, and given that ownership is rising fast.

Disclosure: None