The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Tristate Capital Holdings Inc (NASDAQ:TSC) .
Tristate Capital Holdings Inc (NASDAQ:TSC) investors should be aware of a decrease in enthusiasm from smart money lately. TSC was in 8 hedge funds’ portfolios at the end of the third quarter of 2016. There were 10 hedge funds in our database with TSC holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Powell Industries, Inc. (NASDAQ:POWL), Iconix Brand Group Inc (NASDAQ:ICON), and Ocwen Financial Corporation (NYSE:OCN) to gather more data points.
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At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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With all of this in mind, we’re going to take a look at the latest action regarding Tristate Capital Holdings Inc (NASDAQ:TSC).
How have hedgies been trading Tristate Capital Holdings Inc (NASDAQ:TSC)?
At Q3’s end, a total of 8 of the hedge funds tracked by Insider Monkey were bullish on this stock, a drop of 20% from the previous quarter. The graph below displays the number of hedge funds with bullish position in TSC over the last 5 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Tom Brown’s Second Curve Capital has the biggest position in Tristate Capital Holdings Inc (NASDAQ:TSC), worth close to $22.2 million, comprising 12.7% of its total 13F portfolio. Sitting at the No. 2 spot is Elizabeth Park Capital Management, led by Fred Cummings, holding a $9.9 million position; 4.3% of its 13F portfolio is allocated to the stock. Remaining professional money managers that are bullish consist of Paul Magidson, Jonathan Cohen. And Ostrom Enders’ Castine Capital Management, Chuck Royce’s Royce & Associates and Renaissance Technologies, one of the largest hedge funds in the world. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Because Tristate Capital Holdings Inc (NASDAQ:TSC) has gone through a declining sentiment from hedge fund managers, it’s safe to say that there lies a certain “tier” of hedgies that elected to cut their full holdings by the end of the third quarter. It’s worth mentioning that Charles Paquelet’s Skylands Capital cashed in the biggest position of all the hedgies monitored by Insider Monkey, comprising close to $0.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dropped about $0.2 million worth of shares.
Let’s check out hedge fund activity in other stocks similar to Tristate Capital Holdings Inc (NASDAQ:TSC). These stocks are Powell Industries, Inc. (NASDAQ:POWL), Iconix Brand Group Inc (NASDAQ:ICON), Ocwen Financial Corporation (NYSE:OCN), and Boulevard Acquisition Corp II (NASDAQ:BLVD). This group of stocks’ market caps are similar to TSC’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| POWL | 14 | 49998 | 3 |
| ICON | 11 | 75907 | -4 |
| OCN | 17 | 62994 | 1 |
| BLVD | 11 | 146114 | 0 |
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $50 million in TSC’s case. Ocwen Financial Corporation (NYSE:OCN) is the most popular stock in this table. On the other hand Iconix Brand Group Inc (NASDAQ:ICON) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Tristate Capital Holdings Inc (NASDAQ:TSC) is even less popular than ICON. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
Disclosure: None
