We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of Teladoc Inc (NYSE:TDOC).
Teladoc Inc (NYSE:TDOC) was in 14 hedge funds’ portfolios at the end of the third quarter of 2015. Teladoc Inc (NYSE:TDOC) investors should pay attention to an increase in hedge fund interest in recent months. There were 2 hedge funds in our database with Teladoc Inc (NYSE:TDOC) holdings at the end of the previous quarter. It may come as a surprise, considering a drop of 21.79% in the share prices of the company. Such a contradictory behavior prompted us to find out more about hedgies that held positions in Teladoc Inc (NYSE:TDOC), at the end of the last quarter.
At the end of this article, we will also compare Teladoc Inc (NYSE:TDOC) to other stocks, including Pretium Resources Inc (NYSE:PVG), FTD Companies Inc (NASDAQ:FTD), and Caesars Entertainment Corp (NASDAQ:CZR) to get a better sense of its popularity.
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According to most traders, hedge funds are perceived as unimportant, outdated investment tools of years past. While there are greater than 8000 funds in operation at present, our researchers choose to focus on the crème de la crème of this group, around 700 funds. It is estimated that this group of investors watches over the lion’s share of the smart money’s total capital, and by observing their first-class investments, Insider Monkey has uncovered several investment strategies that have historically outstripped Mr. Market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points per year for a decade in their back tests.
With all of this in mind, let’s take a look at the recent action encompassing Teladoc Inc (NYSE:TDOC).
How are hedge funds trading Teladoc Inc (NYSE:TDOC)?
At the end of Q3, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 600% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Ken Griffin’s Citadel Investment Group has the biggest position in Teladoc Inc (NYSE:TDOC), worth close to $21.7 million, comprising less than 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Blue Mountain Capital, managed by Andrew Feldstein and Stephen Siderow, which holds a $21.1 million position; 0.4% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that are bullish encompass Scott McLellan’s Marble Arch Investments, James H. Litinsky’s JHL Capital Group, and Jerome Pfund and Michael Sjostrom’s Sectoral Asset Management.
Now, key money managers have been driving this bullishness. Marble Arch Investments initiated a $15.3 million position during the quarter. The other funds with new positions in the stock are JHL Capital Group, Sectoral Asset Management, and James Dondero’s Highland Capital Management.
Let’s now review hedge fund activity in other stocks similar to Teladoc Inc (NYSE:TDOC). These stocks are Pretium Resources Inc (NYSE:PVG), FTD Companies Inc (NASDAQ:FTD), Caesars Entertainment Corp (NASDAQ:CZR), and InvenSense Inc (NYSE:INVN). This group of stocks’ market valuations are similar to Teladoc Inc (NYSE:TDOC)’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| PVG | 12 | 73523 | 0 |
| FTD | 20 | 123144 | 4 |
| CZR | 23 | 254293 | 1 |
| INVN | 16 | 63546 | -4 |
As you can see, these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $129 million. That figure was $97 million in Teladoc Inc (NYSE:TDOC)’s case. Caesars Entertainment Corp (NASDAQ:CZR) is the most popular stock in this table. On the other hand, Pretium Resources Inc (NYSE:PVG) is the least popular one with only 12 bullish hedge fund positions. Teladoc Inc (NYSE:TDOC) 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. In this regard, Caesars Entertainment Corp (NASDAQ:CZR) might be a better candidate to consider a long position.
