Is Talkspace Inc. (NASDAQ:TALK) 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.
Is Talkspace Inc. (TALK) a good stock to buy? Investors who are in the know were becoming hopeful. The number of bullish hedge fund positions advanced by 22 recently. Talkspace Inc. (NASDAQ:TALK) was in 22 hedge funds’ portfolios at the end of September. Our calculations also showed that TALK isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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. Keeping this in mind we’re going to take a look at the recent hedge fund action regarding Talkspace Inc. (NASDAQ:TALK).
Israel Englander of Millennium Management
Do Hedge Funds Think TALK Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 22 from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TALK over the last 25 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Hudson Executive Capital held the most valuable stake in Talkspace Inc. (NASDAQ:TALK), which was worth $37.7 million at the end of the third quarter. On the second spot was Clearline Capital which amassed $6.2 million worth of shares. Schonfeld Strategic Advisors, Tamarack Capital Management, and Millennium 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 Hudson Executive Capital allocated the biggest weight to Talkspace Inc. (NASDAQ:TALK), around 2.65% of its 13F portfolio. Tamarack Capital Management is also relatively very bullish on the stock, setting aside 0.92 percent of its 13F equity portfolio to TALK.
Now, key money managers have jumped into Talkspace Inc. (NASDAQ:TALK) headfirst. Schonfeld Strategic Advisors, managed by Ryan Tolkin (CIO), created the most valuable position in Talkspace Inc. (NASDAQ:TALK). Schonfeld Strategic Advisors had $3.3 million invested in the company at the end of the quarter. Justin John Ferayorni’s Tamarack Capital Management also initiated a $2.9 million position during the quarter. The other funds with new positions in the stock are Renaissance Technologies, Alok Agrawal’s Bloom Tree Partners, and Ken Griffin’s Citadel Investment Group.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Talkspace Inc. (NASDAQ:TALK) but similarly valued. We will take a look at Westport Fuel Systems Inc. (NASDAQ:WPRT), China Yuchai International Limited (NYSE:CYD), SIGA Technologies Inc. (NASDAQ:SIGA), Bioceres Crop Solutions Corp. (NASDAQ:BIOX), CuriosityStream Inc. (NASDAQ:CURI), Stoneridge, Inc. (NYSE:SRI), and Midland States Bancorp, Inc. (NASDAQ:MSBI). This group of stocks’ market values are closest to TALK’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WPRT | 15 | 41973 | -1 |
| CYD | 8 | 58189 | 0 |
| SIGA | 11 | 40437 | -2 |
| BIOX | 1 | 1714 | 0 |
| CURI | 5 | 3278 | -1 |
| SRI | 9 | 39753 | -2 |
| MSBI | 9 | 12269 | 2 |
| Average | 8.3 | 28230 | -0.6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.3 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. That figure was $65 million in TALK’s case. Westport Fuel Systems Inc. (NASDAQ:WPRT) is the most popular stock in this table. On the other hand Bioceres Crop Solutions Corp. (NASDAQ:BIOX) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Talkspace Inc. (NASDAQ:TALK) is more popular among hedge funds. Our overall hedge fund sentiment score for TALK 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Unfortunately TALK wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TALK were disappointed as the stock returned -46% since the end of the third quarter (through 12/31) 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.
