We at Insider Monkey have gone over 866 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article, we look at what those funds think of Tandem Diabetes Care Inc (NASDAQ:TNDM) based on that data.
Is Tandem Diabetes Care Inc (NASDAQ:TNDM) an attractive stock to buy now? Money managers were in a bearish mood. The number of bullish hedge fund positions went down by 1 lately. Tandem Diabetes Care Inc (NASDAQ:TNDM) was in 25 hedge funds’ portfolios at the end of March. The all time high for this statistic is 39. Our calculations also showed that TNDM isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 26 hedge funds in our database with TNDM holdings at the end of December.
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Do Hedge Funds Think TNDM Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 25 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -4% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards TNDM over the last 23 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Citadel Investment Group held the most valuable stake in Tandem Diabetes Care Inc (NASDAQ:TNDM), which was worth $57.4 million at the end of the fourth quarter. On the second spot was Point72 Asset Management which amassed $32.7 million worth of shares. Citadel Investment Group, Intrinsic Edge Capital, and Renaissance Technologies were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Intrinsic Edge Capital allocated the biggest weight to Tandem Diabetes Care Inc (NASDAQ:TNDM), around 1.1% of its 13F portfolio. Osterweis Capital Management is also relatively very bullish on the stock, earmarking 0.49 percent of its 13F equity portfolio to TNDM.
Seeing as Tandem Diabetes Care Inc (NASDAQ:TNDM) has faced falling interest from the entirety of the hedge funds we track, we can see that there exists a select few fund managers that decided to sell off their full holdings heading into Q2. Intriguingly, Principal Global Investors’s Columbus Circle Investors sold off the largest position of the “upper crust” of funds tracked by Insider Monkey, totaling close to $29.8 million in stock. Wen Han Li’s fund, Andar Capital, also dropped its stock, about $9.7 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 1 funds heading into Q2.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tandem Diabetes Care Inc (NASDAQ:TNDM) but similarly valued. We will take a look at Douglas Emmett, Inc. (NYSE:DEI), SolarWinds Corporation (NYSE:SWI), Crane Co. (NYSE:CR), MAXIMUS, Inc. (NYSE:MMS), Braskem SA (NYSE:BAK), Glacier Bancorp, Inc. (NASDAQ:GBCI), and Enstar Group Ltd. (NASDAQ:ESGR). This group of stocks’ market values resemble TNDM’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DEI | 14 | 337957 | -7 |
| SWI | 22 | 2290541 | -2 |
| CR | 17 | 277149 | -7 |
| MMS | 18 | 116208 | -6 |
| BAK | 8 | 29378 | 0 |
| GBCI | 16 | 66851 | 5 |
| ESGR | 11 | 504821 | 0 |
| Average | 15.1 | 517558 | -2.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.1 hedge funds with bullish positions and the average amount invested in these stocks was $518 million. That figure was $205 million in TNDM’s case. SolarWinds Corporation (NYSE:SWI) is the most popular stock in this table. On the other hand Braskem SA (NYSE:BAK) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Tandem Diabetes Care Inc (NASDAQ:TNDM) is more popular among hedge funds. Our overall hedge fund sentiment score for TNDM is 73.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through July 9th and still beat the market by 6.7 percentage points. Unfortunately TNDM wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TNDM were disappointed as the stock returned 10.2% since the end of the first quarter (through 7/9) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
