The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 823 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th, when the S&P 500 Index was trading around the 3100 level. Stocks kept going up since then. In this article we look at how hedge funds traded Talend S.A. (NASDAQ:TLND) and determine whether the smart money was really smart about this stock.
Is Talend S.A. (NASDAQ:TLND) going to take off soon? Money managers were turning less bullish. The number of long hedge fund bets fell by 1 lately. Talend S.A. (NASDAQ:TLND) was in 28 hedge funds’ portfolios at the end of June. The all time high for this statistics is 32. Our calculations also showed that TLND isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the eyes of most stock holders, hedge funds are seen as underperforming, old financial tools of yesteryear. While there are greater than 8000 funds trading at the moment, Our researchers hone in on the elite of this club, around 850 funds. These hedge fund managers have their hands on bulk of the smart money’s total capital, and by shadowing their finest stock picks, Insider Monkey has brought to light various investment strategies that have historically outstripped the broader indices. Insider Monkey’s flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points a year since its inception in March 2017. Our portfolio of short stocks lost 34% since February 2017 (through August 17th) even though the market was up 53% during the same period. We just shared a list of 8 short targets in our latest quarterly update .
David S. Winter of 40 North Management
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website to get excerpts of these letters in your inbox. With all of this in mind let’s take a look at the key hedge fund action regarding Talend S.A. (NASDAQ:TLND).
What have hedge funds been doing with Talend S.A. (NASDAQ:TLND)?
Heading into the third quarter of 2020, a total of 28 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -3% from the previous quarter. On the other hand, there were a total of 24 hedge funds with a bullish position in TLND a year ago. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
More specifically, 40 North Management was the largest shareholder of Talend S.A. (NASDAQ:TLND), with a stake worth $80.6 million reported as of the end of September. Trailing 40 North Management was Light Street Capital, which amassed a stake valued at $72 million. Praesidium Investment Management Company, Sunriver Management, and Hawk Ridge Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Sunriver Management allocated the biggest weight to Talend S.A. (NASDAQ:TLND), around 7.01% of its 13F portfolio. StackLine Partners is also relatively very bullish on the stock, earmarking 4.95 percent of its 13F equity portfolio to TLND.
Because Talend S.A. (NASDAQ:TLND) has witnessed a decline in interest from hedge fund managers, logic holds that there exists a select few funds that elected to cut their positions entirely by the end of the second quarter. Interestingly, Spencer M. Waxman’s Shannon River Fund Management sold off the biggest position of all the hedgies followed by Insider Monkey, comprising about $17.5 million in stock, and Thomas Ellis and Todd Hammer’s North Run Capital was right behind this move, as the fund said goodbye to about $5.2 million worth. These moves are interesting, as total hedge fund interest fell by 1 funds by the end of the second quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Talend S.A. (NASDAQ:TLND) but similarly valued. We will take a look at Qiwi PLC (NASDAQ:QIWI), Cerus Corporation (NASDAQ:CERS), Seacoast Banking Corporation of Florida (NASDAQ:SBCF), Brinker International, Inc. (NYSE:EAT), Fanhua Inc. (NASDAQ:FANH), BioXcel Therapeutics, Inc. (NASDAQ:BTAI), and Opera Limited (NASDAQ:OPRA). This group of stocks’ market caps are closest to TLND’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| QIWI | 7 | 53958 | -4 |
| CERS | 14 | 136689 | -3 |
| SBCF | 7 | 10484 | -1 |
| EAT | 27 | 278432 | 11 |
| FANH | 4 | 3438 | -1 |
| BTAI | 13 | 99964 | 3 |
| OPRA | 5 | 8672 | -1 |
| Average | 11 | 84520 | 0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $85 million. That figure was $522 million in TLND’s case. Brinker International, Inc. (NYSE:EAT) is the most popular stock in this table. On the other hand Fanhua Inc. (NASDAQ:FANH) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Talend S.A. (NASDAQ:TLND) is more popular among hedge funds. Our overall hedge fund sentiment score for TLND is 80.3. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks returned 21.3% in 2020 through September 25th but still managed to beat the market by 17.7 percentage points. Hedge funds were also right about betting on TLND as the stock returned 13% since the end of June and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
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Disclosure: None. This article was originally published at Insider Monkey.
