Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Fifth Third Bancorp (FITB) Going to Burn These Hedge Funds?

Judging by the fact that Fifth Third Bancorp (NASDAQ:FITB) has faced a decline in interest from the smart money, we can see that there lies a certain “tier” of hedgies that decided to sell off their positions entirely in the third quarter. At the top of the heap, Jim Simons’ Renaissance Technologies sold off the biggest stake of all the hedgies monitored by Insider Monkey, valued at about $26.3 million in stock. Israel Englander’s fund, Millennium Management, also dumped its stock, about $25.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 3 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to Fifth Third Bancorp (NASDAQ:FITB). These stocks are Lam Research Corporation (NASDAQ:LRCX), EQT Corporation (NYSE:EQT), Laboratory Corp. of America Holdings (NYSE:LH), and Markel Corporation (NYSE:MKL). This group of stocks’ market valuations resemble FITB’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LRCX 47 2031070 0
EQT 25 576492 -11
LH 45 1883933 -3
MKL 15 899585 -5

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $1.35 billion. That figure was $333 million in FITB’s case. Lam Research Corporation (NASDAQ:LRCX) is the most popular stock in this table. On the other hand Markel Corporation (NYSE:MKL) is the least popular one with only 15 bullish hedge fund positions. Fifth Third Bancorp (NASDAQ:FITB) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LRCX might be a better candidate to consider for a long position.

Disclosure: None

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...