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.

JPMorgan Chase & Co. (JPM): Hedge Funds Are Standing Pat

JPMorgan Chase & Co. (NYSE:JPM) has certainly faced its fair share of turmoil over the past 18 months, but shares have still been in the green, and are up a little under 18% year-to-date. Hedge fund data suggests in interesting phenomenon at play here: stagnancy. Insider sentiment is also intriguing.

To the average investor, there are plenty of metrics investors can use to watch publicly traded companies. A pair of the most innovative are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can outclass the market by a solid margin (see just how much).

Just as necessary, positive insider trading sentiment is a second way to look at the marketplace. Obviously, there are many reasons for an insider to get rid of shares of his or her company, but just one, very clear reason why they would buy. Plenty of academic studies have demonstrated the valuable potential of this method if piggybackers know what to do (learn more here).

Keeping this in mind, let’s examine the recent info for JPMorgan Chase & Co. (NYSE:JPM).

Hedge fund activity in JPMorgan Chase & Co. (NYSE:JPM)

At the end of the second quarter, a total of 95 of the hedge funds we track were long in this stock, a change of 1% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes meaningfully.

JPMorgan Chase & Co. (NYSE:JPM)According to our 13F database, Natixis Global Asset Management’s Harris Associates had the biggest position in JPMorgan Chase & Co. (NYSE:JPM), worth close to $1.3482 billion, comprising 2.8% of its total 13F portfolio. On Harris Associates’s heels is Lansdowne Partners, managed by Paul Ruddock and Steve Heinz, which held a $804.6 million position; 10.2% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include Ken Fisher’s Fisher Asset Management, Phill Gross and Robert Atchinson’s Adage Capital Management and D. E. Shaw’s D E Shaw.

As one would understandably expect, certain money managers have been driving this bullishness. Lansdowne Partners, managed by Paul Ruddockáand Steve Heinz, created the most outsized position in JPMorgan Chase & Co. (NYSE:JPM). Lansdowne Partners had 804.6 million invested in the company at the end of the quarter. Ken Fisher’s Fisher Asset Management also made a $691 million investment in the stock during the quarter. The following funds were also among the new JPM investors: Phill Gross and Robert Atchinson’s Adage Capital Management, D. E. Shaw’s D E Shaw, and Richard S. Pzena’s Pzena Investment Management.

How are insiders trading JPMorgan Chase & Co. (NYSE:JPM)?

Insider buying is most useful when the company in question has seen transactions within the past half-year. Over the last 180-day time period, JPMorgan Chase & Co. (NYSE:JPM) has experienced 1 unique insiders purchasing, and 9 insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to JPMorgan Chase & Co. (NYSE:JPM). These stocks are Toronto-Dominion Bank (USA) (NYSE:TD), Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU), Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C), and Wells Fargo & Co (NYSE:WFC). This group of stocks belong to the money center banks industry and their market caps are closest to JPM’s market cap.

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.