In this article we are going to use hedge fund sentiment as a tool and determine whether TFI International Inc. (NYSE:TFII) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.
TFI International Inc. (NYSE:TFII) investors should pay attention to an increase in hedge fund interest recently. TFI International Inc. (NYSE:TFII) was in 23 hedge funds’ portfolios at the end of September. The all time high for this statistic was previously 19. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 13 hedge funds in our database with TFII holdings at the end of June. Our calculations also showed that TFII isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Ryan Tolkin, CIO of Schonfeld Strategic Advisors
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now let’s check out the fresh hedge fund action encompassing TFI International Inc. (NYSE:TFII).
Do Hedge Funds Think TFII Is A Good Stock To Buy Now?
At Q3’s end, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of 77% from one quarter earlier. On the other hand, there were a total of 13 hedge funds with a bullish position in TFII a year ago. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
More specifically, Millennium Management was the largest shareholder of TFI International Inc. (NYSE:TFII), with a stake worth $81.8 million reported as of the end of September. Trailing Millennium Management was Maple Rock Capital, which amassed a stake valued at $32.1 million. Waratah Capital Advisors, Schonfeld Strategic Advisors, and Impala Asset 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 Maple Rock Capital allocated the biggest weight to TFI International Inc. (NYSE:TFII), around 4.49% of its 13F portfolio. Hill City Capital is also relatively very bullish on the stock, earmarking 3.76 percent of its 13F equity portfolio to TFII.
As one would reasonably expect, key hedge funds have jumped into TFI International Inc. (NYSE:TFII) headfirst. Impala Asset Management, managed by Robert Bishop, established the largest position in TFI International Inc. (NYSE:TFII). Impala Asset Management had $18.5 million invested in the company at the end of the quarter. Louis Bacon’s Moore Global Investments also initiated a $14.8 million position during the quarter. The other funds with brand new TFII positions are Alexander Mitchell’s Scopus Asset Management, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Renaissance Technologies.
Let’s check out hedge fund activity in other stocks similar to TFI International Inc. (NYSE:TFII). We will take a look at The Middleby Corporation (NASDAQ:MIDD), Altice USA, Inc. (NYSE:ATUS), CAE, Inc. (NYSE:CAE), China Southern Airlines Co Ltd (NYSE:ZNH), Newell Brands Inc. (NYSE:NWL), Texas Pacific Land Trust (NYSE:TPL), and Life Storage, Inc. (NYSE:LSI). All of these stocks’ market caps are closest to TFII’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MIDD | 29 | 567959 | -6 |
| ATUS | 59 | 1167928 | 15 |
| CAE | 7 | 83687 | -3 |
| ZNH | 3 | 8197 | 1 |
| NWL | 26 | 1635531 | 1 |
| TPL | 24 | 1973702 | 3 |
| LSI | 24 | 326658 | 3 |
| Average | 24.6 | 823380 | 2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.6 hedge funds with bullish positions and the average amount invested in these stocks was $823 million. That figure was $270 million in TFII’s case. Altice USA, Inc. (NYSE:ATUS) is the most popular stock in this table. On the other hand China Southern Airlines Co Ltd (NYSE:ZNH) is the least popular one with only 3 bullish hedge fund positions. TFI International Inc. (NYSE:TFII) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TFII is 57.9. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. 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 31.1% in 2021 through December 9th and surpassed the market again by 5.1 percentage points. Unfortunately TFII wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); TFII investors were disappointed as the stock returned 6.2% since the end of September (through 12/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
Follow Tfi International Inc. (NYSE:TFII)
Follow Tfi International Inc. (NYSE:TFII)
Suggested Articles:
- 12 Best Marijuana Stocks to Invest In
- 30 Most Expensive Cities in the US
- 15 Largest French Companies by Market Cap
Disclosure: None. This article was originally published at Insider Monkey.
