As one would reasonably expect, specific money managers were leading the bulls’ herd. Arrowstreet Capital assembled the biggest position in ServisFirst Bancshares, Inc. (NASDAQ:SFBS). According to regulatory filings, the fund had $0.7 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.3 million investment in the stock during the quarter.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as ServisFirst Bancshares, Inc. (NASDAQ:SFBS) but similarly valued. We will take a look at Acceleron Pharma Inc (NASDAQ:XLRN), SkyWest, Inc. (NASDAQ:SKYW), Yadkin Financial Corp (NASDAQ:YDKN), and Albany International Corp. (NYSE:AIN). All of these stocks’ market caps resemble SFBS’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $92 million. That figure was $12 million in SFBS’s case. Acceleron Pharma Inc (NASDAQ:XLRN) is the most popular stock in this table. On the other hand Albany International Corp. (NYSE:AIN) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks ServisFirst Bancshares, Inc. (NASDAQ:SFBS) is even less popular than AIN. 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.