Do Hedge Funds Love Tyler Technologies, Inc. (TYL)?

Does Tyler Technologies, Inc. (NYSE:TYL) represent a good buying opportunity at the moment? Let’s briefly check the hedge fund sentiment towards the company. Hedge fund firms constantly search out bright intellectuals and highly-experienced employees and throw away millions of dollars on research activities, so it is no wonder why they tend to generate millions in profits each year. It is also true that some hedge fund players fail unconceivably on some occasions, but their stock picks have been generating superior risk-adjusted returns on average over the years.

Tyler Technologies, Inc. (NYSE:TYL) investors should be aware of a decrease in enthusiasm from smart money of late. TYL was in 19 hedge funds’ portfolios at the end of September. There were 21 hedge funds in our database with TYL holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Steel Dynamics, Inc. (NASDAQ:STLD), Commscope Holding Company Inc (NASDAQ:COMM), and Owens Corning (NYSE:OC) to gather more data points.

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How are hedge funds trading Tyler Technologies, Inc. (NYSE:TYL)?

At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a drop of 10% from the previous quarter. On the other hand, there were a total of 16 hedge funds with a bullish position in TYL at the beginning of this year. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Citadel Investment Group, led by Ken Griffin, holds the number one position in Tyler Technologies, Inc. (NYSE:TYL). Citadel Investment Group has a $49 million position in the stock. The second largest stake is held by RGM Capital, led by Robert G. Moses, which holds a $47.7 million position; the fund has 5.4% of its 13F portfolio invested in the stock. Other members of the smart money with similar optimism consist of Sharlyn C. Heslam’s Stockbridge Partners, Principal Global Investors’ Columbus Circle Investors and Mario Gabelli’s GAMCO Investors. We should note that RGM Capital is 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.