Hedge Funds Are Selling Mitsubishi UFJ Financial Group Inc (ADR) (MTU)

Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) was in 8 hedge funds’ portfolio at the end of March. MTU shareholders have witnessed a decrease in support from the world’s most elite money managers in recent months. There were 13 hedge funds in our database with MTU holdings at the end of the previous quarter.

In the 21st century investor’s toolkit, there are a multitude of indicators investors can use to watch their holdings. A duo of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the best investment managers can outclass the broader indices by a superb amount (see just how much).

Just as key, bullish insider trading sentiment is a second way to break down the investments you’re interested in. As the old adage goes: there are a number of reasons for an upper level exec to get rid of shares of his or her company, but just one, very simple reason why they would initiate a purchase. Several empirical studies have demonstrated the impressive potential of this strategy if you understand what to do (learn more here).

Keeping this in mind, it’s important to take a glance at the key action regarding Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU).

How are hedge funds trading Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU)?

In preparation for this quarter, a total of 8 of the hedge funds we track were long in this stock, a change of -38% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were upping their holdings meaningfully.

When looking at the hedgies we track, Ken Fisher’s Fisher Asset Management had the largest position in Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU), worth close to $52.5 million, comprising 0.1% of its total 13F portfolio. Coming in second is Moore Global Investments, managed by Louis Bacon, which held a $10 million position; 0.2% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include D. E. Shaw’s D E Shaw, Jim Simons’s Renaissance Technologies and David Dreman’s Dreman Value Management.

Since Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) has experienced falling interest from hedge fund managers, it’s easy to see that there exists a select few funds that elected to cut their full holdings last quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the largest stake of the “upper crust” of funds we watch, totaling close to $1.9 million in stock., and Mike Vranos of Ellington was right behind this move, as the fund sold off about $0.8 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 5 funds last quarter.

How have insiders been trading Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU)?

Bullish insider trading is at its handiest when the company in question has seen transactions within the past half-year. Over the latest 180-day time frame, Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s check out hedge fund and insider activity in other stocks similar to Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU). These stocks are Bank of Montreal (USA) (NYSE:BMO), Citigroup Inc. (NYSE:C), Bank of America Corp (NYSE:BAC), The Bank of Nova Scotia (USA) (NYSE:BNS), and Toronto-Dominion Bank (USA) (NYSE:TD). This group of stocks are in the money center banks industry and their market caps match MTU’s market cap.

With the returns exhibited by Insider Monkey’s research, everyday investors must always pay attention to hedge fund and insider trading activity, and Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) applies perfectly to this mantra.

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