Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Tsakos Energy Navigation Ltd. (NYSE:TNP) was in 10 hedge funds’ portfolios at the end of September. TNP has seen a decrease in support from the world’s most successful money managers lately. There were 15 hedge funds in our database with TNP positions 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 TG Therapeutics Inc (NASDAQ:TGTX), One Liberty Properties, Inc. (NYSE:OLP), and Mesa Laboratories, Inc. (NASDAQ:MLAB) to gather more data points.
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, let’s take a gander at the latest action regarding Tsakos Energy Navigation Ltd. (NYSE:TNP).
Hedge fund activity in Tsakos Energy Navigation Ltd. (NYSE:TNP)
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -33% from the second quarter of 2016. On the other hand, there were a total of 12 hedge funds with a bullish position in TNP at the beginning of this year. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, David Iben’s Kopernik Global Investors has the biggest position in Tsakos Energy Navigation Ltd. (NYSE:TNP), worth close to $16.2 million, accounting for 3.5% of its total 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, one of the largest hedge funds in the world, with an $11.7 million position. Other hedge funds and institutional investors with similar optimism encompass James Dinan’s York Capital Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that Kopernik Global Investors 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.
We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. At the top of the heap, Brian Taylor’s Pine River Capital Management said goodbye to the biggest position of all the hedgies tracked by Insider Monkey, comprising close to $7.5 million in stock. Thomas Bailard’s fund, Bailard Inc, also dumped its stock, about $0.2 million worth.
Let’s now take a look at hedge fund activity in other stocks similar to Tsakos Energy Navigation Ltd. (NYSE:TNP). These stocks are TG Therapeutics Inc (NASDAQ:TGTX), One Liberty Properties, Inc. (NYSE:OLP), Mesa Laboratories, Inc. (NASDAQ:MLAB), and Ryerson Holding Corp (NYSE:RYI). This group of stocks’ market values are similar to TNP’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TGTX | 5 | 96973 | -4 |
| OLP | 7 | 13555 | 1 |
| MLAB | 5 | 44719 | 0 |
| RYI | 14 | 34906 | 4 |
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 $48 million. That figure was $35 million in TNP’s case. Ryerson Holding Corp (NYSE:RYI) is the most popular stock in this table. On the other hand TG Therapeutics Inc (NASDAQ:TGTX) is the least popular one with only 5 bullish hedge fund positions. Tsakos Energy Navigation Ltd. (NYSE:TNP) 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 RYI might be a better candidate to consider taking a long position in.
Disclosure: None
