Is Twin River Worldwide Holdings Inc. (NYSE:TRWH) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. The top picks of these firms have historically outperformed the market when we account for known risk factors, making them very valuable investment ideas.
Twin River Worldwide Holdings Inc. (NYSE:TRWH) has experienced an increase in hedge fund interest in recent months. Our calculations also showed that TRWH isn’t among the 30 most popular stocks among hedge funds.
In the financial world there are several signals market participants use to size up publicly traded companies. A duo of the best signals are hedge fund and insider trading signals. We have shown that, historically, those who follow the best picks of the best fund managers can outpace the S&P 500 by a significant amount (see the details here).
Let’s take a look at the latest hedge fund action encompassing Twin River Worldwide Holdings Inc. (NYSE:TRWH).
What does smart money think about Twin River Worldwide Holdings Inc. (NYSE:TRWH)?
At the end of the first quarter, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10 from the fourth quarter of 2018. By comparison, 0 hedge funds held shares or bullish call options in TRWH a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Solus Alternative Asset Management, managed by Christopher Pucillo, holds the largest position in Twin River Worldwide Holdings Inc. (NYSE:TRWH). Solus Alternative Asset Management has a $129.8 million position in the stock, comprising 31.4% of its 13F portfolio. The second most bullish fund manager is HG Vora Capital Management, managed by Parag Vora, which holds a $66.5 million position; 4.9% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors with similar optimism consist of Paul Reeder and Edward Shapiro’s PAR Capital Management, Leon Cooperman’s Omega Advisors and Andy Rebak and Michael Scott’s Farmstead Capital Management.
Now, key hedge funds have jumped into Twin River Worldwide Holdings Inc. (NYSE:TRWH) headfirst. Solus Alternative Asset Management, managed by Christopher Pucillo, established the biggest position in Twin River Worldwide Holdings Inc. (NYSE:TRWH). Solus Alternative Asset Management had $129.8 million invested in the company at the end of the quarter. Parag Vora’s HG Vora Capital Management also initiated a $66.5 million position during the quarter. The other funds with brand new TRWH positions are Paul Reeder and Edward Shapiro’s PAR Capital Management, Leon Cooperman’s Omega Advisors, and Andy Rebak and Michael Scott’s Farmstead Capital Management.
Let’s now take a look at hedge fund activity in other stocks similar to Twin River Worldwide Holdings Inc. (NYSE:TRWH). We will take a look at Brookdale Senior Living, Inc. (NYSE:BKD), Tabula Rasa HealthCare, Inc. (NASDAQ:TRHC), Presidio, Inc. (NASDAQ:PSDO), and Monmouth R.E. Inv. Corp. (NYSE:MNR). This group of stocks’ market values resemble TRWH’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BKD | 27 | 362928 | 1 |
| TRHC | 7 | 22718 | -5 |
| PSDO | 25 | 57575 | 19 |
| MNR | 9 | 57010 | 0 |
| Average | 17 | 125058 | 3.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $125 million. That figure was $312 million in TRWH’s case. Brookdale Senior Living, Inc. (NYSE:BKD) is the most popular stock in this table. On the other hand Tabula Rasa HealthCare, Inc. (NASDAQ:TRHC) is the least popular one with only 7 bullish hedge fund positions. Twin River Worldwide Holdings Inc. (NYSE:TRWH) is not the least popular stock in this group but hedge fund interest is still below average. 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 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately TRWH wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); TRWH investors were disappointed as the stock returned -3.4% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published at Insider Monkey.
