Hedge Funds Are Betting On Southside Bancshares, Inc. (SBSI)

Southside Bancshares, Inc. (NASDAQ:SBSI) was in 6 hedge funds’ portfolio at the end of March. SBSI investors should be aware of an increase in hedge fund sentiment of late. There were 5 hedge funds in our database with SBSI positions at the end of the previous quarter.

According to most investors, hedge funds are assumed to be underperforming, old financial tools of the past. While there are over 8000 funds trading at present, we hone in on the masters of this club, close to 450 funds. It is estimated that this group has its hands on most of the smart money’s total asset base, and by watching their highest performing equity investments, we have revealed a number of investment strategies that have historically outpaced the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).

Equally as integral, optimistic insider trading activity is another way to parse down the marketplace. As the old adage goes: there are plenty of stimuli for an upper level exec to drop shares of his or her company, but just one, very simple reason why they would buy. Many empirical studies have demonstrated the useful potential of this strategy if you know what to do (learn more here).

Now, it’s important to take a gander at the key action surrounding Southside Bancshares, Inc. (NASDAQ:SBSI).

How are hedge funds trading Southside Bancshares, Inc. (NASDAQ:SBSI)?

In preparation for this quarter, a total of 6 of the hedge funds we track were long in this stock, a change of 20% from one quarter earlier. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their holdings meaningfully.

When looking at the hedgies we track, Renaissance Technologies, managed by Jim Simons, holds the largest position in Southside Bancshares, Inc. (NASDAQ:SBSI). Renaissance Technologies has a $2.8 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Sitting at the No. 2 spot is Hutchin Hill Capital, managed by Neil Chriss, which held a $1.2 million position; 0.1% of its 13F portfolio is allocated to the company. Remaining hedgies that are bullish include Israel Englander’s Millennium Management, John Overdeck and David Siegel’s Two Sigma Advisors and D. E. Shaw’s D E Shaw.

Now, key hedge funds were breaking ground themselves. D E Shaw, managed by D. E. Shaw, assembled the largest position in Southside Bancshares, Inc. (NASDAQ:SBSI). D E Shaw had 0.5 million invested in the company at the end of the quarter.

How are insiders trading Southside Bancshares, Inc. (NASDAQ:SBSI)?

Insider trading activity, especially when it’s bullish, is best served when the company in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Southside Bancshares, Inc. (NASDAQ:SBSI) has experienced 4 unique insiders buying, and 2 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Southside Bancshares, Inc. (NASDAQ:SBSI). These stocks are TowneBank (NASDAQ:TOWN), WSFS Financial Corporation (NASDAQ:WSFS), First Community Bancshares Inc (NASDAQ:FCBC), Ameris Bancorp (NASDAQ:ABCB), and Stellarone Corp (NASDAQ:STEL). All of these stocks are in the regional – mid-atlantic banks industry and their market caps match SBSI’s market cap.

With the returns demonstrated by the aforementioned strategies, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Southside Bancshares, Inc. (NASDAQ:SBSI) is no exception.

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