A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Trinseo S.A. (NYSE:TSE).
Is Trinseo S.A. (NYSE:TSE) going to take off soon? Investors who are in the know are becoming more confident. The number of bullish hedge fund positions advanced by 8 lately. TSE was in 35 hedge funds’ portfolios at the end of the third quarter of 2016. There were 27 hedge funds in our database with TSE positions at the end of the previous quarter. At the end of this article we will also compare TSE to other stocks including Wolverine World Wide, Inc. (NYSE:WWW), Dynegy Inc. (NYSE:DYN), and IMAX Corporation (USA) (NYSE:IMAX) to get a better sense of its popularity.
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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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Keeping this in mind, let’s go over the fresh action encompassing Trinseo S.A. (NYSE:TSE).
What have hedge funds been doing with Trinseo S.A. (NYSE:TSE)?
At the end of the third quarter, a total of 35 of the hedge funds tracked by Insider Monkey were long this stock, a change of 30% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Zimmer Partners, managed by Stuart J. Zimmer, holds the biggest position in Trinseo S.A. (NYSE:TSE). Zimmer Partners has a $196.1 million position in the stock, comprising 5.3% of its 13F portfolio. Some other professional money managers that are bullish comprise Jim Simons’ Renaissance Technologies, Paul Marshall and Ian Wace’s Marshall Wace LLP and Robert Polak’s Anchor Bolt Capital.
As one would reasonably expect, specific money managers were leading the bulls’ herd. Laurion Capital Management, managed by Benjamin A. Smith, established the most outsized position in Trinseo S.A. (NYSE:TSE). Laurion Capital Management had $92.4 million invested in the company at the end of the quarter. Joshua Kaufman and Craig Nerenberg’s Brenner West Capital Partners also made a $52 million investment in the stock during the quarter. The other funds with new positions in the stock are Leon Cooperman’s Omega Advisors, and Steve Cohen’s Point72 Asset Management.
Let’s now review hedge fund activity in other stocks similar to Trinseo S.A. (NYSE:TSE). We will take a look at Wolverine World Wide, Inc. (NYSE:WWW), Dynegy Inc. (NYSE:DYN), IMAX Corporation (USA) (NYSE:IMAX), and NGL Energy Partners LP (NYSE:NGL). This group of stocks’ market caps match TSE’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WWW | 13 | 134599 | -1 |
| DYN | 36 | 760238 | -7 |
| IMAX | 14 | 105884 | 1 |
| NGL | 6 | 14335 | 1 |
As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $254 million. That figure was $849 million in TSE’s case. Dynegy Inc. (NYSE:DYN) is the most popular stock in this table. On the other hand NGL Energy Partners LP (NYSE:NGL) is the least popular one with only 6 bullish hedge fund positions. Trinseo S.A. (NYSE:TSE) 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 DYN might be a better candidate to consider a long position.
