Is The TJX Companies, Inc. (NYSE:TJX) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
The TJX Companies, Inc. (NYSE:TJX) has seen a slight decrease in hedge fund interest during the third quarter. There were 48 funds from our database long the stock at the end of September, down from 49 funds a quarter earlier. However, to get a better sense of its popularity, we will also compare TJX to other stocks, including Morgan Stanley (NYSE:MS), Ford Motor Company (NYSE:F), and Kimberly Clark Corp (NYSE:KMB), at the end of this article.
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Keeping this in mind, we’re going to take a peek at the fresh action encompassing The TJX Companies, Inc. (NYSE:TJX).
How have hedgies been trading The TJX Companies, Inc. (NYSE:TJX)?
At the end of the third quarter, a total of 48 of the hedge funds tracked by Insider Monkey held long positions in this stock, down by 2% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Ric Dillon’s Diamond Hill Capital has the largest position in The TJX Companies, Inc. (NYSE:TJX), worth close to $277.6 million, corresponding to 1.7% of its total 13F portfolio. Sitting at the No. 2 spot is Two Sigma Advisors, managed by John Overdeck and David Siegel, which holds a $202.5 million position; the fund has 0.9% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions include Israel Englander’s Millennium Management, Principal Global Investors’ Columbus Circle Investors, and Cliff Asness’s AQR Capital Management.
Seeing as The TJX Companies, Inc. (NYSE:TJX) has witnessed a decline in interest from the aggregate hedge fund industry, it’s easy to see that there were a few hedgies who sold off their entire stakes last quarter. It’s worth mentioning that Jim Simons’ Renaissance Technologies said goodbye to the largest investment of the “upper crust” of funds monitored by Insider Monkey, valued at an estimated $83.7 million in stock, and Kamyar Khajavi’s MIK Capital was right behind this move, as the fund dumped about $68.7 million worth of shares.
Let’s now review hedge fund activity in other stocks similar to The TJX Companies, Inc. (NYSE:TJX). These stocks are Morgan Stanley (NYSE:MS), Ford Motor Company (NYSE:F), Kimberly Clark Corp (NYSE:KMB), and The Southern Company (NYSE:SO). This group of stocks’ market valuations resemble TJX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MS | 46 | 3631666 | -3 |
| F | 32 | 683624 | 1 |
| KMB | 29 | 1420992 | 7 |
| SO | 20 | 568071 | -1 |
As you can see these stocks had an average of 32 funds with bullish positions at the end of the third quarter and the average amount invested in these stocks was $1576 million. That figure was $1764 million in TJX Companies’ case. Morgan Stanley (NYSE:MS) is the most popular stock in this table. On the other hand The Southern Company (NYSE:SO) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks The TJX Companies, Inc. (NYSE:TJX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.
