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IBERIABANK Corporation (IBKC): Are Hedge Funds Right About This Stock?: EverBank Financial Corp (EVER), F.N.B. Corp (FNB)

IBERIABANK Corporation (NASDAQ:IBKC) shareholders have witnessed an increase in support from the world’s most elite money managers recently.

IBERIABANK Corporation (NASDAQ:IBKC)In the eyes of most shareholders, hedge funds are assumed to be worthless, outdated financial vehicles of yesteryear. While there are more than 8000 funds trading at the moment, we hone in on the crème de la crème of this club, around 450 funds. Most estimates calculate that this group oversees the majority of the hedge fund industry’s total capital, and by monitoring their highest performing picks, we have discovered a few investment strategies that have historically beaten the broader indices. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 24 percentage points in 7 months (explore the details and some picks here).

Just as important, optimistic insider trading sentiment is another way to break down the marketplace. Just as you’d expect, there are many motivations for an insider to drop shares of his or her company, but only one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the valuable potential of this strategy if piggybackers know where to look (learn more here).

With these “truths” under our belt, we’re going to take a peek at the key action encompassing IBERIABANK Corporation (NASDAQ:IBKC).

What does the smart money think about IBERIABANK Corporation (NASDAQ:IBKC)?

Heading into 2013, a total of 5 of the hedge funds we track held long positions in this stock, a change of 25% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes substantially.

Of the funds we track, Ken Griffin’s Citadel Investment Group had the biggest position in IBERIABANK Corporation (NASDAQ:IBKC), worth close to $26.9 million, comprising less than 0.1%% of its total 13F portfolio. On Citadel Investment Group’s heels is Jeffrey Vinik of Vinik Asset Management, with a $7.2 million position; 0.2% of its 13F portfolio is allocated to the stock. Some other hedgies that are bullish include Eric D. Hovde’s Hovde Capital, Mike Vranos’s Ellington and Steven Cohen’s SAC Capital Advisors.

Now, specific money managers were breaking ground themselves. Vinik Asset Management, managed by Jeffrey Vinik, initiated the largest position in IBERIABANK Corporation (NASDAQ:IBKC). Vinik Asset Management had 7.2 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also made a $0.4 million investment in the stock during the quarter. The only other fund with a brand new IBKC position is Steven Cohen’s SAC Capital Advisors.

How have insiders been trading IBERIABANK Corporation (NASDAQ:IBKC)?

Insider buying is at its handiest when the primary stock in question has experienced transactions within the past half-year. Over the latest 180-day time period, IBERIABANK Corporation (NASDAQ:IBKC) has experienced zero unique insiders buying, and 5 insider sales (see the details of insider trades here).

Let’s also review hedge fund and insider activity in other stocks similar to IBERIABANK Corporation (NASDAQ:IBKC). These stocks are EverBank Financial Corp (NYSE:EVER), F.N.B. Corp (NYSE:FNB), Trustmark Corp (NASDAQ:TRMK), Bank Of The Ozarks Inc (NASDAQ:OZRK), and BancorpSouth, Inc. (NYSE:BXS). This group of stocks are in the regional – southeast banks industry and their market caps are similar to IBKC’s market cap.