Hedge Funds Have Never Been This Bullish On Tronox Holdings Plc (TROX)

We at Insider Monkey have gone over 867 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of Tronox Holdings Plc (NYSE:TROX) based on that data.

Is Tronox Holdings Plc (NYSE:TROX) going to take off soon? Investors who are in the know were betting on the stock. The number of long hedge fund positions increased by 2 recently. Tronox Holdings Plc (NYSE:TROX) was in 38 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic was previously 36. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that TROX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 36 hedge funds in our database with TROX holdings at the end of June.

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. With all of this in mind we’re going to take a glance at the key hedge fund action encompassing Tronox Holdings Plc (NYSE:TROX).

Sander Gerber of Hudson Bay Capital

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

At Q3’s end, a total of 38 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 6% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards TROX over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Among these funds, Maple Rock Capital held the most valuable stake in Tronox Holdings Plc (NYSE:TROX), which was worth $52.4 million at the end of the third quarter. On the second spot was Luminus Management which amassed $41.1 million worth of shares. TOMS Capital, Impala Asset Management, and Balyasny 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 Luminus Management allocated the biggest weight to Tronox Holdings Plc (NYSE:TROX), around 8.63% of its 13F portfolio. Maple Rock Capital is also relatively very bullish on the stock, designating 7.34 percent of its 13F equity portfolio to TROX.

Consequently, key hedge funds were breaking ground themselves. TOMS Capital, managed by Benjamin Pass, initiated the biggest call position in Tronox Holdings Plc (NYSE:TROX). TOMS Capital had $37 million invested in the company at the end of the quarter. Simon Sadler’s Segantii Capital also initiated a $12.1 million position during the quarter. The following funds were also among the new TROX investors: Sander Gerber’s Hudson Bay Capital Management, Benjamin A. Smith’s Laurion Capital Management, and Isaac Corre’s Governors Lane.

Let’s now take a look at hedge fund activity in other stocks similar to Tronox Holdings Plc (NYSE:TROX). We will take a look at Definitive Healthcare Corp. (NASDAQ:DH), Moelis & Company (NYSE:MC), Summit Materials Inc (NYSE:SUM), Fabrinet (NYSE:FN), MaxLinear, Inc. (NYSE:MXL), MultiPlan Corporation (NYSE:MPLN), and Brighthouse Financial, Inc. (NASDAQ:BHF). This group of stocks’ market values are closest to TROX’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 23.9 hedge funds with bullish positions and the average amount invested in these stocks was $219 million. That figure was $357 million in TROX’s case. Brighthouse Financial, Inc. (NASDAQ:BHF) is the most popular stock in this table. On the other hand Fabrinet (NYSE:FN) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Tronox Holdings Plc (NYSE:TROX) is more popular among hedge funds. Our overall hedge fund sentiment score for TROX is 87. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Unfortunately TROX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TROX were disappointed as the stock returned -10.4% since the end of the third quarter (through 11/30) 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.