How Do Hedge Funds Feel About BankUnited (BKU)?

The market has been volatile as the Federal Reserve winds down its easy money policies. Small cap stocks have been hit hard as a result, as the Russell 2000 ETF (IWM) has underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25th and the end of October. SEC filings and hedge fund investor letters indicate that the smart money seems to be paring back their overall long exposure, and the funds’ movements is one of the reasons why the major indexes have retraced. In this article, we analyze what the smart money thinks of BankUnited (NYSE:BKU) and find out how it is affected by the hedge funds’ moves.

Is BankUnited a buy right now? Prominent investors are in a bearish mood. The number of long hedge fund positions has gone down by 2 in recent months. BKU was in 14 hedge funds’ portfolios at the end of September. There were 16 hedge funds in our database with BKU positions at the end of the previous quarter. At the end of this article we will also compare BKU to other stocks, including Tenet Healthcare Corp (NYSE:THC), Buffalo Wild Wings (NASDAQ:BWLD), and Allegiant Travel Company (NASDAQ:ALGT) to get a better sense of its popularity.

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Now, let’s analyze the recent action surrounding BankUnited (NYSE:BKU).

How are hedge funds trading BankUnited (NYSE:BKU)?

Heading into Q4, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of -13% from the second quarter. With hedgies’ sentiment swirling, there exists a few key hedge fund managers who were upping their stakes substantially (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Citadel Investment Group, managed by Ken Griffin, holds the number one position in BankUnited (NYSE:BKU). Citadel Investment Group has a $72.6 million position in the stock, comprising 0.1% of its 13F portfolio. On Citadel’s heels is Anand Parekh of Alyeska Investment Group, with a $72.4 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Some other peers that hold long positions comprise Mark Lee’s Forest Hill Capital, D. E. Shaw’s D E Shaw and Chuck Royce’s Royce & Associates.