Teck Resources Ltd (USA) (TCK): Are Hedge Funds Right About This Stock?

Hedge funds run by legendary names like Nelson Peltz and David Tepper make billions of dollars a year for themselves and their super-rich accredited investors (you’ve got to have a minimum of $1 million liquid to invest in a hedge fund) by spending enormous resources on analyzing and uncovering data about small-cap stocks that the big brokerage houses don’t follow. Small caps are where they can generate significant out-performance. That’s why we pay special attention to hedge fund activity in these stocks.

Is Teck Resources Ltd (USA) (NYSE:TCK) ready to rally soon? Money managers are in a bullish mood. The number of long hedge fund bets moved up by 4 recently. TCK was in 19 hedge funds’ portfolios at the end of September. There were 15 hedge funds in our database with TCK 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 Telephone & Data Systems, Inc. (NYSE:TDS), Ascena Retail Group Inc (NASDAQ:ASNA), and Crane Co. (NYSE:CR) to gather more data points.

Keeping this in mind, let’s check out the latest action surrounding Teck Resources Ltd (USA) (NYSE:TCK).

How have hedgies been trading Teck Resources Ltd (USA) (NYSE:TCK)?

At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 27% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).

When looking at the institutional investors followed by Insider Monkey, Tyrus Capital, managed by Tony Chedraoui, holds the biggest position in Teck Resources Ltd (USA) (NYSE:TCK). Tyrus Capital has an $9.6 million call position in the stock, comprising 1.6% of its 13F portfolio. Sitting at the No. 2 spot is Luminus Management, managed by Jonathan Barrett and Paul Segal, which holds an $9.3 million position; 0.3% of its 13F portfolio is allocated to the stock. Other peers that hold long positions comprise Daniel S. Och’s OZ Management, Paul Marshall and Ian Wace’s Marshall Wace LLP and John A. Levin’s Levin Capital Strategies.