We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified TNAV as a viable investment and initiated a position in the stock.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Telenav Inc (NASDAQ:TNAV) but similarly valued. These stocks are Eaton Vance Senior Income Trust (NYSE:EVF), Ultra Clean Holdings Inc (NASDAQ:UCTT), Marlin Business Services Corp. (NASDAQ:MRLN), and Container Store Group Inc (NYSE:TCS). This group of stocks’ market values match TNAV’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| EVF | 3 | 7103 | -1 |
| UCTT | 13 | 25931 | 2 |
| MRLN | 7 | 63623 | 1 |
| TCS | 7 | 13829 | -5 |
As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. That figure was $53 million in TNAV’s case. Ultra Clean Holdings Inc (NASDAQ:UCTT) is the most popular stock in this table. On the other hand Eaton Vance Senior Income Trust (NYSE:EVF) is the least popular one with only 3 bullish hedge fund positions. Telenav Inc (NASDAQ:TNAV) 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 UCTT might be a better candidate to consider taking a long position in.
Disclosure: None
