We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article we look at what those investors think of Trilogy Metals Inc. (NYSE:TMQ).
Trilogy Metals Inc. (NYSE:TMQ) investors should pay attention to an increase in support from the world’s most elite money managers lately. TMQ was in 13 hedge funds’ portfolios at the end of March. There were 12 hedge funds in our database with TMQ positions at the end of the previous quarter. Our calculations also showed that tmq isn’t among the 30 most popular stocks among hedge funds.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 40 percentage points since May 2014 through May 30, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 30.9% through May 30, 2019. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Let’s view the recent hedge fund action encompassing Trilogy Metals Inc. (NYSE:TMQ).
How are hedge funds trading Trilogy Metals Inc. (NYSE:TMQ)?
At the end of the first quarter, a total of 13 of the hedge funds tracked by Insider Monkey were long this stock, a change of 8% from the previous quarter. By comparison, 10 hedge funds held shares or bullish call options in TMQ a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Trilogy Metals Inc. (NYSE:TMQ) was held by Baupost Group, which reported holding $32 million worth of stock at the end of March. It was followed by Paulson & Co with a $28.5 million position. Other investors bullish on the company included Selz Capital, Millennium Management, and Point State Capital.
Now, key money managers were leading the bulls’ herd. DW Partners, managed by David Warren, assembled the biggest position in Trilogy Metals Inc. (NYSE:TMQ). DW Partners had $2.5 million invested in the company at the end of the quarter. Mark Kingdon’s Kingdon Capital also made a $2.5 million investment in the stock during the quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Trilogy Metals Inc. (NYSE:TMQ) but similarly valued. These stocks are Camtek LTD. (NASDAQ:CAMT), BSB Bancorp Inc (NASDAQ:BLMT), Standard Diversified Inc. (NYSE:SDI), and Orchid Island Capital, Inc. (NYSE:ORC). All of these stocks’ market caps are closest to TMQ’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CAMT | 10 | 23041 | 0 |
| BLMT | 7 | 28681 | 1 |
| SDI | 3 | 6001 | 0 |
| ORC | 3 | 7254 | -3 |
| Average | 5.75 | 16244 | -0.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.75 hedge funds with bullish positions and the average amount invested in these stocks was $16 million. That figure was $120 million in TMQ’s case. Camtek LTD. (NASDAQ:CAMT) is the most popular stock in this table. On the other hand Standard Diversified Inc. (NYSE:SDI) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Trilogy Metals Inc. (NYSE:TMQ) is more popular among hedge funds. 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. Hedge funds were also right about betting on TMQ as the stock returned 18.7% during the same period and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published at Insider Monkey.
