Hudson City Bancorp, Inc. (NASDAQ:HCBK) was in 24 hedge funds’ portfolio at the end of the first quarter of 2013. HCBK has experienced a decrease in hedge fund interest in recent months. There were 25 hedge funds in our database with HCBK positions at the end of the previous quarter.
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Just as important, optimistic insider trading sentiment is a second way to break down the investments you’re interested in. As the old adage goes: there are lots of stimuli for an upper level exec to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the market-beating potential of this strategy if shareholders know what to do (learn more here).
With all of this in mind, let’s take a peek at the key action encompassing Hudson City Bancorp, Inc. (NASDAQ:HCBK).
What have hedge funds been doing with Hudson City Bancorp, Inc. (NASDAQ:HCBK)?
Heading into Q2, a total of 24 of the hedge funds we track held long positions in this stock, a change of -4% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes meaningfully.
Of the funds we track, Harvard Management Co, managed by Jane Mendillo, holds the biggest position in Hudson City Bancorp, Inc. (NASDAQ:HCBK). Harvard Management Co has a $137.2 million position in the stock, comprising 12.3% of its 13F portfolio. Sitting at the No. 2 spot is Robert Emil Zoellner of Alpine Associates, with a $132.3 million position; 5.1% of its 13F portfolio is allocated to the stock. Remaining peers that are bullish include Cliff Asness’s AQR Capital Management, Sander Gerber’s Hudson Bay Capital Management and Phill Gross and Robert Atchinson’s Adage Capital Management.
Seeing as Hudson City Bancorp, Inc. (NASDAQ:HCBK) has experienced declining sentiment from the smart money, we can see that there were a few hedgies who sold off their entire stakes heading into Q2. It’s worth mentioning that Nick Niell’s Arrowgrass Capital Partners dropped the largest investment of the 450+ funds we monitor, totaling an estimated $45.7 million in stock.. John Thiessen’s fund, Vertex One Asset Management, also sold off its stock, about $6 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 1 funds heading into Q2.
How are insiders trading Hudson City Bancorp, Inc. (NASDAQ:HCBK)?
Bullish insider trading is best served when the company in focus has experienced transactions within the past six months. Over the latest half-year time period, Hudson City Bancorp, Inc. (NASDAQ:HCBK) has seen zero unique insiders buying, and 2 insider sales (see the details of insider trades here).
Let’s also take a look at hedge fund and insider activity in other stocks similar to Hudson City Bancorp, Inc. (NASDAQ:HCBK). These stocks are Investors Bancorp, Inc. (NASDAQ:ISBC), First Niagara Financial Group Inc. (NASDAQ:FNFG), New York Community Bancorp, Inc. (NYSE:NYCB), Ocwen Financial Corporation (NYSE:OCN), and People’s United Financial, Inc. (NASDAQ:PBCT). This group of stocks are in the savings & loans industry and their market caps are similar to HCBK’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Investors Bancorp, Inc. (NASDAQ:ISBC)||9||1||1|
|First Niagara Financial Group Inc. (NASDAQ:FNFG)||19||3||0|
|New York Community Bancorp, Inc. (NYSE:NYCB)||15||0||0|
|Ocwen Financial Corporation (NYSE:OCN)||37||0||4|
|People’s United Financial, Inc. (NASDAQ:PBCT)||7||0||1|
With the returns exhibited by the aforementioned tactics, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and Hudson City Bancorp, Inc. (NASDAQ:HCBK) is no exception.