Is TAL International Group, Inc. (NYSE:TAL) undervalued? Money managers are turning bullish. The number of bullish hedge fund positions moved up by 9 recently.
To most traders, hedge funds are viewed as worthless, outdated financial tools of yesteryear. While there are over 8000 funds trading at the moment, we choose to focus on the moguls of this club, about 450 funds. It is estimated that this group has its hands on most of all hedge funds’ total asset base, and by keeping an eye on their top equity investments, we have determined a few investment strategies that have historically beaten the S&P 500 index. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have beaten the S&P 500 index by 23.3 percentage points in 8 months (explore the details and some picks here).
Just as beneficial, bullish insider trading activity is a second way to parse down the world of equities. Obviously, there are a variety of reasons for an upper level exec to downsize shares of his or her company, but just one, very simple reason why they would buy. Many academic studies have demonstrated the useful potential of this strategy if you know where to look (learn more here).
Consequently, we’re going to take a gander at the recent action encompassing TAL International Group, Inc. (NYSE:TAL).
Hedge fund activity in TAL International Group, Inc. (NYSE:TAL)
At the end of the first quarter, a total of 14 of the hedge funds we track were long in this stock, a change of 180% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were boosting their stakes meaningfully.
According to our comprehensive database, Millennium Management, managed by Israel Englander, holds the biggest position in TAL International Group, Inc. (NYSE:TAL). Millennium Management has a $7.9 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Millennium Management’s heels is Ascend Capital, managed by Malcolm Fairbairn, which held a $7.6 million position; 0.3% of its 13F portfolio is allocated to the stock. Some other hedge funds that are bullish include Brian Taylor’s Pine River Capital Management, D. E. Shaw’s D E Shaw and Jim Simons’s Renaissance Technologies.
With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Millennium Management, managed by Israel Englander, created the largest position in TAL International Group, Inc. (NYSE:TAL). Millennium Management had 7.9 million invested in the company at the end of the quarter. Malcolm Fairbairn’s Ascend Capital also initiated a $7.6 million position during the quarter. The other funds with new positions in the stock are Brian Taylor’s Pine River Capital Management, D. E. Shaw’s D E Shaw, and Jim Simons’s Renaissance Technologies.
What do corporate executives and insiders think about TAL International Group, Inc. (NYSE:TAL)?
Insider buying is most useful when the company in focus has experienced transactions within the past six months. Over the last six-month time period, TAL International Group, Inc. (NYSE:TAL) has seen 1 unique insiders purchasing, and 8 insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to TAL International Group, Inc. (NYSE:TAL). These stocks are GATX Corporation (NYSE:GMT), Textainer Group Holdings Limited (NYSE:TGH), Aaron’s, Inc. (NYSE:AAN), and Rent-A-Center Inc (NASDAQ:RCII). This group of stocks are the members of the rental & leasing services industry and their market caps are closest to TAL’s market cap.
