Is SVB Financial Group (SIVB) Going to Burn These Hedge Funds?

Consequently, key hedge funds have jumped into SVB Financial Group (NASDAQ:SIVB) headfirst. Basswood Capital, managed by Matthew Lindenbaum, initiated the largest position in SVB Financial Group (NASDAQ:SIVB). Basswood Capital had $9.8 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also initiated a $5.2 million position during the quarter. The following funds were also among the new SIVB investors: Jim Simons’ Renaissance Technologies, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.

Let’s check out hedge fund activity in other stocks similar to SVB Financial Group (NASDAQ:SIVB). We will take a look at Macquarie Infrastructure Company LLC (NYSE:MIC), Domino’s Pizza, Inc. (NYSE:DPZ), NiSource Inc. (NYSE:NI), and Atmos Energy Corporation (NYSE:ATO). All of these stocks’ market caps resemble SIVB’s market cap.

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $777 million. That figure was $454 million in SIVB’s case. Macquarie Infrastructure Company LLC (NYSE:MIC) is the most popular stock in this table. On the other hand Atmos Energy Corporation (NYSE:ATO) is the least popular one with only 11 bullish hedge fund positions. SVB Financial Group (NASDAQ:SIVB) 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 MIC might be a better candidate to consider a long position.