With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter. One of these stocks was CenterState Banks Inc (NASDAQ:CSFL).
CenterState Banks Inc (NASDAQ:CSFL) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 15 hedge funds’ portfolios at the end of September. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as ArcBest Corp (NASDAQ:ARCB), Baytex Energy Corp (USA) (NYSE:BTE), and First NBC Bank Holding Company (NASDAQ:FNBC) to gather more data points.
Follow Centerstate Bank Corp (NASDAQ:CSFL)
Follow Centerstate Bank Corp (NASDAQ:CSFL)
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Now, we’re going to go over the fresh action regarding CenterState Banks Inc (NASDAQ:CSFL).
How have hedgies been trading CenterState Banks Inc (NASDAQ:CSFL)?
Heading into Q4, a total of 15 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Forest Hill Capital, managed by Mark Lee, holds the largest position in CenterState Banks Inc (NASDAQ:CSFL). Forest Hill Capital has a $45.2 million position in the stock, comprising 4.3% of its 13F portfolio. Sitting at the No. 2 spot is Basswood Capital, led by Matthew Lindenbaum, holding a $37 million position; 1.8% of its 13F portfolio is allocated to the stock. Remaining professional money managers with similar optimism comprise Chuck Royce’s Royce & Associates, Fred Cummings’ Elizabeth Park Capital Management and Jim Simons’ Renaissance Technologies.
Due to the fact that CenterState Banks Inc (NASDAQ:CSFL) has witnessed falling interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedgies that decided to sell off their full holdings by the end of the third quarter. Intriguingly, Clint Carlson’s Carlson Capital cut the largest stake of all the hedgies followed by Insider Monkey, comprising about $3.7 million in stock, and Ken Gray and Steve Walsh’s Bryn Mawr Capital was right behind this move, as the fund dumped about $1.9 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now take a look at hedge fund activity in other stocks similar to CenterState Banks Inc (NASDAQ:CSFL). We will take a look at ArcBest Corp (NASDAQ:ARCB), Baytex Energy Corp (USA) (NYSE:BTE), First NBC Bank Holding Company (NASDAQ:FNBC), and TCP Capital Corp (NASDAQ:TCPC). All of these stocks’ market caps are similar to CSFL’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ARCB | 17 | 39420 | 4 |
| BTE | 14 | 22236 | 7 |
| FNBC | 10 | 42157 | -2 |
| TCPC | 7 | 5983 | 3 |
As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $110 million in CSFL’s case. ArcBest Corp (NASDAQ:ARCB) is the most popular stock in this table. On the other hand, TCP Capital Corp (NASDAQ:TCPC) is the least popular one with only 7 bullish hedge fund positions. CenterState Banks Inc (NASDAQ:CSFL) 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 ARCB might be a better candidate to consider a long position.