Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors' positions as of the end of the third quarter. You can find write-ups about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Bankwell Financial Group, Inc. (NASDAQ: BWFG ) based on that data.
Bankwell Financial Group, Inc. (NASDAQ: BWFG ) shares haven't seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 5 hedge funds' portfolios at the end of the third quarter of 2018. 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 Maui Land & Pineapple Co. (NYSE: MLP ), Mid Penn Bancorp (NASDAQ: MPB ), and Unity Bancorp, Inc. (NASDAQ: UNTY ) to gather more data points.
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Let's take a peek at the new hedge fund action surrounding Bankwell Financial Group, Inc. (NASDAQ: BWFG ).
How have hedgies been trading Bankwell Financial Group, Inc. (NASDAQ:BWFG)?
At the end of the third quarter, a total of 5 of the hedge funds tracked by Insider Monkey were long this stock, no change from the previous quarter. On the other hand, there were a total of 5 hedge funds with a bullish position in BWFG at the beginning of this year. So, let's review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Endicott Management was the largest shareholder of Bankwell Financial Group, Inc. (NASDAQ:BWFG), with a stake worth $19.9 million reported as of the end of September. Trailing Endicott Management was Seidman Investment Partnership, which amassed a stake valued at $6.1 million. Renaissance Technologies, Elizabeth Park Capital Management, and Millennium Management were also very fond of the stock, giving the stock large weights in their portfolios.
Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren't any hedge funds dumping their holdings during the third quarter, there weren't any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven't identified any viable catalysts that can attract investor attention.
Let's now take a look at hedge fund activity in other stocks - not necessarily in the same industry as Bankwell Financial Group, Inc. (NASDAQ:BWFG) but similarly valued. We will take a look at Maui Land & Pineapple Co. (NYSE: MLP ), Mid Penn Bancorp (NASDAQ: MPB ), Unity Bancorp, Inc. (NASDAQ: UNTY ), and First Bank (NASDAQ: FRBA ). All of these stocks' market caps match BWFG's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position MLP,2,7687,-1 MPB,2,4983,1 UNTY,4,34170,0 FRBA,3,6299,-1 Average,2.75,13285,-0.25 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 2.75 hedge funds with bullish positions and the average amount invested in these stocks was $13 million. That figure was $36 million in BWFG's case. Unity Bancorp, Inc. (NASDAQ:UNTY) is the most popular stock in this table. On the other hand Maui Land & Pineapple Co. (NYSE:MLP) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Bankwell Financial Group, Inc. (NASDAQ:BWFG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
Disclosure: None. This article was originally published at Insider Monkey.