What Hedge Funds Think Of These Two Stocks On A Roll Today

Considered a systemically important financial institution, or “too big to fail”, Metlife Inc (NYSE:MET) is seeking to return cash to shareholders, as the company awaits clarity on capital requirements following the 2008 financial crisis. This label might have a major impact on the capital it needs to set aside according to the new, stricter rules.

Excess capital belongs to MetLife’s shareholders. This new authorization is consistent with the prudent capital management strategy we have been employing,” said Steven Kandarian, CEO of MetLife.

So far this year, the company’s stock has shed 14.8% of its value and looks poised to go even lower, with the management having recently issued revised forward guidance for the third quarter. Profits are expected to decrease by $792 million or $0.70 per share on account of tax costs incurred by a U.K subsidiary. In general, hedge fund sentiment towards the insurance giant significantly improved during the second quarter, with ten more funds holding positions and lifting the total tally of hedge funds betting on the stock to 55. The total value of their investments exceeded $2.7 billion at the end of June, having increased by 41% during the quarter.

Andreas Halvorsen is a big fan of Metlife Inc (NYSE:MET), with his fund, Viking Global, holding the biggest stake in the company among the hedge funds that we track: 11.7 million shares, up by 77% during the second quarter. Cliff Asness has also significantly increased his bet on this stock, taking his holding to roughly 2.57 million shares, according to AQR Capital Management’s latest 13F filing. Fir Tree, founded by Jeffrey Tannenbaum, on the other hand, felt that reducing its stake was more appropriate, cutting it by 34% during the quarter. Fir Tree reportedly holds 5.08 million shares as of June 30, 2015.

Disclosure: None