Do Hedge Funds Love Triple-S Management Corp.(GTS)?

The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of June 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Triple-S Management Corp.(NYSE:GTS).

Hedge fund interest in Triple-S Management Corp.(NYSE:GTS) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that GTS isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings). At the end of this article we will also compare GTS to other stocks including Inventiva S.A. (NASDAQ:IVA), Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM), and Rimini Street, Inc. (NASDAQ:RMNI) to get a better sense of its popularity.

According to most shareholders, hedge funds are seen as unimportant, outdated financial vehicles of yesteryear. While there are greater than 8000 funds in operation at the moment, We choose to focus on the bigwigs of this group, about 850 funds. These investment experts have their hands on most of all hedge funds’ total asset base, and by paying attention to their finest equity investments, Insider Monkey has come up with a number of investment strategies that have historically outrun the market. Insider Monkey’s flagship short hedge fund strategy outstripped the S&P 500 short ETFs by around 20 percentage points per annum since its inception in March 2017. Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website .

David E. Shaw of D.E. Shaw

With all of this in mind we’re going to take a look at the key hedge fund action surrounding Triple-S Management Corp.(NYSE:GTS).

Do Hedge Funds Think GTS Is A Good Stock To Buy Now?

At second quarter’s end, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards GTS over the last 24 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).

More specifically, Pzena Investment Management was the largest shareholder of Triple-S Management Corp.(NYSE:GTS), with a stake worth $44.3 million reported as of the end of June. Trailing Pzena Investment Management was Lakewood Capital Management, which amassed a stake valued at $16 million. D E Shaw, Arrowstreet Capital, and Invenomic Capital 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 Invenomic Capital Management allocated the biggest weight to Triple-S Management Corp.(NYSE:GTS), around 1.21% of its 13F portfolio. Lakewood Capital Management is also relatively very bullish on the stock, designating 0.66 percent of its 13F equity portfolio to GTS.

Due to the fact that Triple-S Management Corp.(NYSE:GTS) has experienced a decline in interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedge funds who were dropping their entire stakes in the second quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group said goodbye to the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at about $0.2 million in stock. Israel Englander’s fund, Millennium Management, also said goodbye to its stock, about $0.2 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Triple-S Management Corp.(NYSE:GTS). We will take a look at Inventiva S.A. (NASDAQ:IVA), Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM), Rimini Street, Inc. (NASDAQ:RMNI), Marine Products Corp. (NYSE:MPX), NeoPhotonics Corp (NYSE:NPTN), First Community Bancshares Inc (NASDAQ:FCBC), and FRP Holdings Inc (NASDAQ:FRPH). This group of stocks’ market values resemble GTS’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 10.4 hedge funds with bullish positions and the average amount invested in these stocks was $72 million. That figure was $89 million in GTS’s case. NeoPhotonics Corp (NYSE:NPTN) is the most popular stock in this table. On the other hand Marine Products Corp. (NYSE:MPX) is the least popular one with only 4 bullish hedge fund positions. Triple-S Management Corp.(NYSE:GTS) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for GTS is 38. 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 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 25.7% in 2021 through September 27th and still beat the market by 6.2 percentage points. A small number of hedge funds were also right about betting on GTS as the stock returned 57.1% since the end of the second quarter (through 9/27) and outperformed the market by an even larger margin.

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Disclosure: None. This article was originally published at Insider Monkey.