At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Third Point because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.
In this article, we’ll assess the hedge fund sentiment towards Talend SA ADR (NASDAQ:TLND), which went public at the beginning of August. Overall, seven funds from our database held shares of TLND at the end of the third quarter. At the end of this article we will also compare TLND to other stocks including YuMe Inc (NYSE:YUME), Pure Cycle Corporation (NASDAQ:PCYO), and Points International Ltd (USA) (NASDAQ:PCOM) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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Keeping this in mind, we’re going to take a peek at the recent action regarding Talend SA ADR (NASDAQ:TLND).
What have hedge funds been doing with Talend SA ADR (NASDAQ:TLND)?
At the end of the third quarter, seven funds tracked by Insider Monkey were long this stock. Let’s take a look at the funds that amassed the largest positions.
Of the funds tracked by Insider Monkey, Christopher Lyle’s SCGE Management has the number one position in Talend SA ADR (NASDAQ:TLND), worth close to $4.3 million, accounting for 1.2% of its total 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $3.8 million position; less than 0.1% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include John Paulson’s Paulson & Co, Steve Cohen’s Point72 Asset Management, and Brad Farber’s Atika Capital. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
On the next page, we are going to see how TLND compares with some of its market-cap peers in terms of hedge fund sentiment.
Let’s also examine hedge fund activity in other stocks similar to Talend SA ADR (NASDAQ:TLND). These stocks are YuMe Inc (NYSE:YUME), Pure Cycle Corporation (NASDAQ:PCYO), Points International Ltd (USA) (NASDAQ:PCOM), and Ampco-Pittsburgh Corp. (NYSE:AP). This group of stocks’ market values match TLND’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| YUME | 9 | 13593 | -2 |
| PCYO | 6 | 54636 | 1 |
| PCOM | 5 | 17456 | -1 |
| AP | 4 | 24192 | -1 |
As you can see these stocks had an average of six funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $14 million in TLND’s case. YuMe Inc (NYSE:YUME) is the most popular stock in this table. On the other hand Ampco-Pittsburgh Corp. (NYSE:AP) is the least popular one with only four bullish hedge fund positions. Talend SA ADR (NASDAQ:TLND) 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 YUME might be a better candidate to consider taking a long position in.
Disclosure: none
