Is Independent Bank Corporation(MI) (IBCP) A Good Investment Opportunity?

As industry-wide interest jumped, key hedge funds have jumped into Independent Bank Corporation(MI) (NASDAQ:IBCP) headfirst. Dmitry Balyasny’s Balyasny Asset Management assembled the most outsized position in Independent Bank Corporation(MI) (NASDAQ:IBCP). Balyasny Asset Management had $0.2 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $0.2 million investment in the stock during the quarter.

Let’s also examine hedge fund activity in other stocks similar to Independent Bank Corporation(MI) (NASDAQ:IBCP). We will take a look at Clearside Biomedical Inc (NASDAQ:CLSD), Southwest Bancorp, Inc. (NASDAQ:OKSB), Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT), and Pier 1 Imports, Inc. (NYSE:PIR). This group of stocks’ market valuations resemble IBCP’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CLSD 5 79949 -3
OKSB 7 23417 2
PFLT 6 10058 1
PIR 18 77201 -4

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $58 million in IBCP’s case. Pier 1 Imports, Inc. (NYSE:PIR) is the most popular stock in this table. On the other hand Clearside Biomedical Inc (NASDAQ:CLSD) is the least popular one with only 5 bullish hedge fund positions. Independent Bank Corporation(MI) (NASDAQ:IBCP) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PIR might be a better candidate to consider taking a long position in.

Disclosure: None