Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Time Inc (NYSE:TIME) based on that data.
Time Inc (NYSE:TIME) was in 18 hedge funds’ portfolios at the end of September. Time Inc has experienced a decrease in hedge fund sentiment recently. There were 25 hedge funds in our database with Time Inc positions 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 Generac Holdings Inc. (NYSE:GNRC), Triumph Group Inc (NYSE:TGI), and Acadia Realty Trust (NYSE:AKR) to gather more data points.
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If you’d ask most market participants, hedge funds are viewed as underperforming, old financial vehicles of years past. While there are over an 8000 funds in operation at present, We hone in on the aristocrats of this club, around 700 funds. These hedge fund managers oversee bulk of the smart money’s total capital, and by tracking their top investments, Insider Monkey has found a few investment strategies that have historically outrun the market. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 12 percentage points a year for a decade in their back tests.
Keeping this in mind, we’re going to take a peek at the key action regarding Time Inc (NYSE:TIME).
How have hedgies been trading Time Inc (NYSE:TIME)?
Heading into Q4, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a 28% drop from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).
Of the funds tracked by Insider Monkey, D E Shaw holds the most valuable position in Time Inc (NYSE:TIME). D E Shaw has a $30.7 million position in the stock, comprising less than 0.1% of its 13F portfolio. On D E Shaw’s heels is Cliff Asness’ AQR Capital Management, with a $16.7 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Remaining professional money managers that are bullish encompass Steve Cohen’s Point72 Asset Management, David Forster and Peter Wilton’s IBIS Capital Partners, and Ken Griffin’s Citadel Investment Group.
Seeing as Time Inc (NYSE:TIME) has witnessed falling interest from the aggregate hedge fund industry, we can see that there was a specific group of fund managers that elected to cut their entire stakes last quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dropped the largest investment of all the hedgies followed by Insider Monkey, comprising an estimated $22.9 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also cut its stock, about $10 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 7 funds last quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Time Inc (NYSE:TIME) but similarly valued. These stocks are Generac Holdings Inc. (NYSE:GNRC), Triumph Group Inc (NYSE:TGI), Acadia Realty Trust (NYSE:AKR), and Fresh Del Monte Produce Inc (NYSE:FDP). This group of stocks’ market values are similar to Time Inc’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GNRC | 14 | 150391 | -1 |
| TGI | 26 | 341365 | -4 |
| AKR | 10 | 118150 | -1 |
| FDP | 10 | 45400 | 2 |
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $164 million. That figure was $113 million in Time Inc’s case. Triumph Group Inc (NYSE:TGI) is the most popular stock in this table. On the other hand Acadia Realty Trust (NYSE:AKR) is the least popular one with only 10 bullish hedge fund positions. Time Inc (NYSE:TIME) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TGI might be a better candidate to consider a long position.
