Out of thousands of stocks that are currently traded on the market, it is difficult to determine those that can really generate strong returns. Hedge funds and institutional investors spend millions of dollars on analysts with MBAs and PhDs, who are industry experts and well connected to other industry and media insiders on top of that. Individual investors can piggyback the hedge funds employing these talents and can benefit from their vast resources and knowledge in that way. We analyze quarterly 13F filings of over 700 hedge funds and, by looking at the smart money sentiment that surrounds a stock, we can determine whether it has potential to beat the market over the long-term. Therefore, let’s take a closer look at what smart money thinks about Teligent Inc (NASDAQ:TLGT).
Follow Teligent Inc. (NASDAQ:TLGT)
Follow Teligent Inc. (NASDAQ:TLGT)
In the financial world, there are numerous gauges investors employ to evaluate publicly traded companies. A couple of the most innovative gauges are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the top investment managers can outperform the S&P 500 by a significant amount (see the details here).
Keeping this in mind, we’re going to check out the latest action regarding Teligent Inc (NASDAQ:TLGT) .
What does the smart money think about Teligent Inc (NASDAQ:TLGT)?
Heading into Q4, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a drop of 9% from the previous quarter. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Kevin Kotler’s Broadfin Capital has the biggest position in Teligent Inc (NASDAQ:TLGT), worth close to $15 million, corresponding to 0.8% of its total 13F portfolio. Sitting at the No. 2 spot is venBio Select Advisor, led by Behzad Aghazadeh, holding a $11.6 million position; 3% of its 13F portfolio is allocated to the stock. Other professional money managers with similar optimism include Clifford Fox’s Columbus Circle Investors, and Philip Hempleman’s Ardsley Partners.
Because Teligent Inc (NASDAQ:TLGT) has faced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of money managers who sold off their positions entirely by the end of the third quarter. Intriguingly, William C. Martin’s Raging Capital Management sold off the largest investment of all the hedgies tracked by Insider Monkey, worth about $5.8 million in stock, and Dov Gertzulin’s DG Capital Management was right behind this move, as the fund dumped about $3.5 million worth of TLGT shares. These bearish behaviors are important to note, as total hedge fund interest was cut by 1 fund by the end of the third quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Teligent Inc (NASDAQ:TLGT) but similarly valued. These stocks are Campus Crest Communities Inc (NYSE:CCG), Stoneridge, Inc. (NYSE:SRI), Servicesource International Inc (NASDAQ:SREV), and Navidea Biopharmaceuticals Inc (NYSEAMEX:NAVB). All of these stocks’ market caps match TLGT’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CCG | 11 | 93663 | 1 |
| SRI | 15 | 62447 | 6 |
| SREV | 12 | 118605 | -2 |
| NAVB | 7 | 30254 | 1 |
As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $76 million. That figure was just $29 million in TLGT’s case. Stoneridge, Inc. (NYSE:SRI) is the most popular stock in this table. On the other hand Navidea Biopharmaceuticals Inc (NYSEAMEX:NAVB) is the least popular one with only 7 bullish hedge fund positions. Teligent Inc (NASDAQ:TLGT) 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 SRI might be a better candidate to consider a long position.