Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Micron and Anadarko Petroleum, have not done well during the last 12 months ending in October due to various reasons. Nevertheless, the data show elite investors’ consensus picks have done well on average. The top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% during the last four quarters ending in October and sixty three percent of these 30 stocks outperformed the market. S&P 500 Index returned only 5.2% during the same period and less than 49% of its constituents managed to beat this return. Because their consensus picks have done well, we pay attention to what elite funds think before doing extensive research on a stock. In this article, we take a closer look at Triple-S Management Corp.(NYSE:GTS) from the perspective of those elite funds.
Triple-S Management Corp.(NYSE:GTS) was in 21 hedge funds’ portfolios at the end of September. GTS investors should be aware of an increase in activity from the world’s largest hedge funds lately. There were 15 hedge funds in our database with GTS holdings at the end of the previous quarter. At the end of this article we will also compare GTS to other stocks including Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Incontact Inc (NASDAQ:SAAS), and Stock Building Supply Holdings Inc (NASDAQ:STCK) to get a better sense of its popularity.
Follow Triple-S Management Corp (NYSE:GTS)
Follow Triple-S Management Corp (NYSE:GTS)
Keeping this in mind, we’re going to review the latest action regarding Triple-S Management Corp.(NYSE:GTS).
What does the smart money think about Triple-S Management Corp.(NYSE:GTS)?
At the end of the third quarter, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 40% from the previous quarter. With the smart money’s sentiment swirling, there exists a select group of key hedge fund managers who were increasing their stakes significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Richard S. Pzena’s Pzena Investment Management has the largest position in Triple-S Management Corp.(NYSE:GTS), worth close to $28.7 million, amounting to 0.2% of its total 13F portfolio. On Pzena Investment Management’s heels is Lakewood Capital Management, led by Anthony Bozza, holding a $14.1 million position; 0.5% of its 13F portfolio is allocated to the company. Other peers that are bullish encompass Anders Hallberg and Carl Bennet’s HealthInvest Partners AB, D E Shaw and Cliff Asness’ AQR Capital Management.
As one would reasonably expect, some big names were leading the bulls’ herd. Algert Coldiron Investors, managed by Peter Algert and Kevin Coldiron, established the most valuable position in Triple-S Management Corp.(NYSE:GTS). Algert Coldiron Investors had $0.5 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also initiated a $0.4 million position during the quarter. The following funds were also among the new GTS investors: Peter Muller’s PDT Partners, Mike Vranos’s Ellington, and Matthew Tewksbury’s Stevens Capital Management.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Triple-S Management Corp.(NYSE:GTS) but similarly valued. These stocks are Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Incontact Inc (NASDAQ:SAAS), Stock Building Supply Holdings Inc (NASDAQ:STCK), and Acacia Research Corporation (NASDAQ:ACTG). This group of stocks’ market valuations resemble GTS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ARNA | 12 | 36184 | -1 |
| SAAS | 12 | 59952 | -8 |
| STCK | 11 | 87235 | 1 |
| ACTG | 11 | 62153 | -5 |
As you can see these stocks had an average of 11.5 hedge funds with bullish positions and the average amount invested in these stocks was $61 million. That figure was $77 million in GTS’s case. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is the most popular stock in this table. On the other hand Stock Building Supply Holdings Inc (NASDAQ:STCK) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Triple-S Management Corp.(NYSE:GTS) 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.
