Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) was in 12 hedge funds’ portfolio at the end of the fourth quarter of 2012. MTU has seen a decrease in enthusiasm from smart money of late. There were 12 hedge funds in our database with MTU positions at the end of the previous quarter.
At the moment, there are dozens of metrics market participants can use to watch stocks. Two of the best are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outclass the market by a significant margin (see just how much).
Equally as important, positive insider trading activity is a second way to break down the world of equities. Obviously, there are a number of reasons for an insider to get rid of shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of academic studies have demonstrated the valuable potential of this strategy if you understand what to do (learn more here).
Consequently, it’s important to take a peek at the recent action surrounding Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU).
What have hedge funds been doing with Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU)?
Heading into 2013, a total of 12 of the hedge funds we track were long in this stock, a change of 0% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their holdings substantially.
Of the funds we track, Renaissance Technologies, managed by Jim Simons, holds the largest position in Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU). Renaissance Technologies has a $11 million position in the stock, comprising 0% of its 13F portfolio. The second largest stake is held by D E Shaw, managed by D. E. Shaw, which held a $9 million position; 0.2% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Louis Bacon’s Moore Global Investments, David Dreman’s Dreman Value Management and Ken Fisher’s Fisher Asset Management.
Judging by the fact that Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) has experienced a declination in interest from the smart money, we can see that there exists a select few fund managers who were dropping their full holdings in Q4. Interestingly, Peter J. Eichler Jr.’s Aletheia Research and Management dropped the largest stake of the 450+ funds we watch, totaling an estimated $2 million in stock., and J. Alan Reid, Jr. of Forward Management was right behind this move, as the fund said goodbye to about $2 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
What have insiders been doing with Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU)?
Insider buying is best served when the company in question has seen transactions within the past half-year. Over the last six-month time period, Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) has seen zero unique insiders buying, 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 Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU). These stocks are Toronto-Dominion Bank (USA) (NYSE:TD), The Bank of Nova Scotia (USA) (NYSE:BNS), Bank of America Corp (NYSE:BAC), Citigroup Inc. (NYSE:C), and Bank of Montreal (USA) (NYSE:BMO). This group of stocks are the members of the money center banks industry and their market caps match MTU’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Toronto-Dominion Bank (USA) (NYSE:TD) | 10 | 0 | 0 |
| The Bank of Nova Scotia (USA) (NYSE:BNS) | 12 | 0 | 0 |
| Bank of America Corp (NYSE:BAC) | 93 | 1 | 0 |
| Citigroup Inc. (NYSE:C) | 108 | 2 | 1 |
| Bank of Montreal (USA) (NYSE:BMO) | 10 | 0 | 0 |
With the results demonstrated by our research, retail investors must always watch hedge fund and insider trading sentiment, and Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) is an important part of this process.
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