Capital Bank Financial Corp (NASDAQ:CBF) investors should be aware of an increase in enthusiasm from smart money of late.
In today’s marketplace, there are a multitude of metrics shareholders can use to track the equity markets. Two of the most under-the-radar are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite investment managers can beat the S&P 500 by a healthy margin (see just how much).
Just as beneficial, optimistic insider trading sentiment is another way to parse down the world of equities. Just as you’d expect, there are lots of incentives for a bullish insider to get rid of shares of his or her company, but only one, very clear reason why they would initiate a purchase. Various academic studies have demonstrated the useful potential of this tactic if shareholders understand what to do (learn more here).
With these “truths” under our belt, let’s take a peek at the recent action regarding Capital Bank Financial Corp (NASDAQ:CBF).
How are hedge funds trading Capital Bank Financial Corp (NASDAQ:CBF)?
At the end of the fourth quarter, a total of 7 of the hedge funds we track were bullish in this stock, a change of 600% from the previous quarter. With hedgies’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes significantly.
Of the funds we track, Michael Lowenstein’s Kensico Capital had the most valuable position in Capital Bank Financial Corp (NASDAQ:CBF), worth close to $18.6 million, comprising 0.6% of its total 13F portfolio. The second largest stake is held by Christian Leone of Luxor Capital Group, with a $17 million position; the fund has 0.6% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Frank Brosens’s Taconic Capital, Clint Carlson’s Carlson Capital and Robert Millard’s Realm Partners.
As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Kensico Capital, managed by Michael Lowenstein, created the most valuable position in Capital Bank Financial Corp (NASDAQ:CBF). Kensico Capital had 18.6 million invested in the company at the end of the quarter. Christian Leone’s Luxor Capital Group also initiated a $17 million position during the quarter. The other funds with brand new CBF positions are Frank Brosens’s Taconic Capital, Clint Carlson’s Carlson Capital, and Robert Millard’s Realm Partners.
Insider trading activity in Capital Bank Financial Corp (NASDAQ:CBF)
Bullish insider trading is most useful when the company we’re looking at has seen transactions within the past half-year. Over the last half-year time period, Capital Bank Financial Corp (NASDAQ:CBF) has experienced 3 unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s also examine hedge fund and insider activity in other stocks similar to Capital Bank Financial Corp (NASDAQ:CBF). These stocks are Renasant Corp. (NASDAQ:RNST), Bank Of The Ozarks Inc (NASDAQ:OZRK), BancorpSouth, Inc. (NYSE:BXS), IBERIABANK Corporation (NASDAQ:IBKC), and Pinnacle Financial Partners (NASDAQ:PNFP). This group of stocks are in the regional – southeast banks industry and their market caps match CBF’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Renasant Corp. (NASDAQ:RNST) | 2 | 5 | 2 |
| Bank Of The Ozarks Inc (NASDAQ:OZRK) | 4 | 1 | 10 |
| BancorpSouth, Inc. (NYSE:BXS) | 10 | 1 | 2 |
| IBERIABANK Corporation (NASDAQ:IBKC) | 5 | 0 | 5 |
| Pinnacle Financial Partners (NASDAQ:PNFP) | 9 | 0 | 2 |
With the returns shown by our strategies, retail investors should always keep an eye on hedge fund and insider trading activity, and Capital Bank Financial Corp (NASDAQ:CBF) shareholders fit into this picture quite nicely.
