The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge funds have been producing disappointing net returns in recent years, however that was partly due to the poor performance of small-cap stocks in general. Well, small-cap stocks finally turned the corner and have been beating the large-cap stocks by more than 10 percentage points over the last 5 months.This means the relevancy of hedge funds’ public filings became inarguable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Tahoe Resources Inc (NYSE:TAHO) .
Is Tahoe Resources Inc (NYSE:TAHO) going to take off soon? Money managers are in a bullish mood. The number of long hedge fund bets that are revealed through the 13F filings increased by 2 in recent months. TAHOwas in 20 hedge funds’ portfolios at the end of September. There were 18 hedge funds in our database with TAHO 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 Tesoro Logistics LP (NYSE:TLLP), Manhattan Associates, Inc. (NASDAQ:MANH), and Commerce Bancshares, Inc. (NASDAQ:CBSH) to gather more data points.
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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Now, let’s view the fresh action surrounding Tahoe Resources Inc (NYSE:TAHO).
Hedge fund activity in Tahoe Resources Inc (NYSE:TAHO)
At Q3’s end, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, a change of 11% from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards TAHO over the last 5 quarters. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital has the number one position in Tahoe Resources Inc (NYSE:TAHO), worth close to $30.4 million, accounting for 0.1% of its total 13F portfolio. The second most bullish fund manager is Eric Sprott of Sprott Asset Management, with a $19.2 million position; 0.7% of its 13F portfolio is allocated to the stock. Remaining peers with similar optimism include Robert B. Gillam’s McKinley Capital Management, Israel Englander’s Millennium Management and Philippe Jabre’s Jabre Capital Partners. We should note that Sprott Asset Management is 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.
Now, key hedge funds have been driving this bullishness. Hudson Bay Capital Management, led by Sander Gerber, assembled the biggest call position in Tahoe Resources Inc (NYSE:TAHO). Hudson Bay Capital Management had $1.1 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also made a $0.9 million investment in the stock during the quarter. The other funds with brand new TAHO positions are John Burbank’s Passport Capital, Alec Litowitz and Ross Laser’s Magnetar Capital, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Tahoe Resources Inc (NYSE:TAHO) but similarly valued. These stocks are Tesoro Logistics LP (NYSE:TLLP), Manhattan Associates, Inc. (NASDAQ:MANH), Commerce Bancshares, Inc. (NASDAQ:CBSH), and Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH). This group of stocks’ market valuations are similar to TAHO’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TLLP | 6 | 24745 | -3 |
| MANH | 16 | 205073 | -5 |
| CBSH | 8 | 61038 | 2 |
| CQH | 19 | 541571 | 6 |
As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $208 million. That figure was $105 million in TAHO’s case. Cheniere Energy Partners LP Holdings LLC (NYSEMKT:CQH) is the most popular stock in this table. On the other hand Tesoro Logistics LP (NYSE:TLLP) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Tahoe Resources Inc (NYSE:TAHO) 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.
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