Last year we predicted the arrival of the first US recession since 2009 and we told in advance that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. In this article, we will take a closer look at hedge fund sentiment towards Talend S.A. (NASDAQ:TLND).
Talend S.A. (NASDAQ:TLND) was in 45 hedge funds’ portfolios at the end of March. The all time high for this statistic was 32. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. TLND investors should be aware of an increase in activity from the world’s largest hedge funds recently. There were 27 hedge funds in our database with TLND holdings at the end of December. Our calculations also showed that TLND isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the financial world there are tons of gauges shareholders can use to value publicly traded companies. A couple of the best gauges are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the top picks of the best investment managers can outpace the broader indices by a significant amount (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
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Do Hedge Funds Think TLND Is A Good Stock To Buy Now?
At Q1’s end, a total of 45 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 67% from the fourth quarter of 2020. The graph below displays the number of hedge funds with bullish position in TLND over the last 23 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, David S. Winter and David J. Millstone’s 40 North Management has the largest position in Talend S.A. (NASDAQ:TLND), worth close to $203.1 million, accounting for 5.6% of its total 13F portfolio. Sitting at the No. 2 spot is Millennium Management, managed by Israel Englander, which holds a $89.1 million position; 0.1% of its 13F portfolio is allocated to the stock. Some other professional money managers that are bullish contain Kevin Oram and Peter Uddo’s Praesidium Investment Management Company, David Brown’s Hawk Ridge Management and Glen Kacher’s Light Street Capital. In terms of the portfolio weights assigned to each position Ararat Capital allocated the biggest weight to Talend S.A. (NASDAQ:TLND), around 12.73% of its 13F portfolio. StackLine Partners is also relatively very bullish on the stock, setting aside 10.21 percent of its 13F equity portfolio to TLND.
With a general bullishness amongst the heavyweights, key money managers have jumped into Talend S.A. (NASDAQ:TLND) headfirst. Pentwater Capital Management, managed by Matthew Halbower, initiated the biggest position in Talend S.A. (NASDAQ:TLND). Pentwater Capital Management had $52.2 million invested in the company at the end of the quarter. John Paulson’s Paulson & Co also initiated a $41.4 million position during the quarter. The other funds with new positions in the stock are Simon Davies’s Sand Grove Capital Partners, Dmitry Balyasny’s Balyasny Asset Management, and Sander Gerber’s Hudson Bay Capital Management.
Let’s also examine hedge fund activity in other stocks similar to Talend S.A. (NASDAQ:TLND). These stocks are Prelude Therapeutics Incorporated (NASDAQ:PRLD), NMI Holdings Inc (NASDAQ:NMIH), Holly Energy Partners, L.P. (NYSE:HEP), Cohu, Inc. (NASDAQ:COHU), B&G Foods, Inc. (NYSE:BGS), Two Harbors Investment Corp (NYSE:TWO), and California Resources Corporation (NYSE:CRC). This group of stocks’ market caps match TLND’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PRLD | 7 | 1340901 | -1 |
| NMIH | 25 | 262921 | 3 |
| HEP | 2 | 3616 | -1 |
| COHU | 25 | 222669 | 12 |
| BGS | 10 | 23184 | -5 |
| TWO | 32 | 200483 | 14 |
| CRC | 23 | 602869 | 3 |
| Average | 17.7 | 379520 | 3.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17.7 hedge funds with bullish positions and the average amount invested in these stocks was $380 million. That figure was $1142 million in TLND’s case. Two Harbors Investment Corp (NYSE:TWO) is the most popular stock in this table. On the other hand Holly Energy Partners, L.P. (NYSE:HEP) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks Talend S.A. (NASDAQ:TLND) is more popular among hedge funds. Our overall hedge fund sentiment score for TLND is 90. 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 17.4% in 2021 through June 18th and still beat the market by 6.1 percentage points. Unfortunately TLND wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TLND were disappointed as the stock returned 2.7% since the end of the first quarter (through 6/18) 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 since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
