Interested in big-name financial industry stocks with signs of pricing in an upside? For ideas, investors often turn to the sentiment of "smart" investors like hedge funds or short-sellers.

Here we screened for those with bullish trends in shares shorted month over month (i.e., short covering), with significant decreases in shares shorted, indicating these investors are becoming less bearish on these stocks.

Due to the borrowing inherent in short-selling, short-sellers undergo background checks and other requirements to qualify, which makes them generally considered to be "smart money" investors. That is, the market closely follows their trades. 

Business section: Investing ideas
Below is the final list of stocks from this screen. Short-sellers are becoming less bearish on these names.

Do you think they're on the cusp of a comeback? (Click here to access free, interactive tools to analyze these ideas.)

1. CBRE Group (NYSE: CBG): Operates as a commercial real estate services company worldwide. Shares shorted have decreased from 8.84 million to 5.59 million over the last month, a decrease which represents about 1.2% of the company's float of 270.21 million shares

2. Federated Investors (NYSE: FII): Provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Shares shorted have decreased from 17.13 million to 15.42 million over the last month, a decrease which represents about 1.84% of the company's float of 92.7 million shares.

3. Legg Mason (NYSE: LM): Operates as an asset management company worldwide. Shares shorted have decreased from 8.5 million to 7.35 million over the last month, a decrease which represents about 1.02% of the company's float of 112.88 million shares.

4. Travelers (NYSE: TRV): Provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. Shares shorted have decreased from 9.71 million to 4.75 million over the last month, a decrease which represents about 1.27% of the company's float of 391.73 million shares.

5. XL Group (NYSE: XL): Provides insurance and reinsurance coverages to industrial, commercial, and professional firms, insurance companies, and other enterprises worldwide. Shares shorted have decreased from 8.0 million to 3.47 million over the last month, a decrease which represents about 1.52% of the company's float of 297.59 million shares.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.