How do we determine whether Triangle Petroleum Corporation (NYSEMKT:TPLM) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that their consensus long positions have historically outperformed the market when we adjust for known risk factors.
Is Triangle Petroleum Corporation (NYSEMKT:TPLM) a buy here? The best stock pickers appear to be more confident after shares of the company plummeted by 72% in the third quarter. The number of bullish hedge fund positions rose by 2 during that quarter, though collectively, the value of their holdings fell by 75%, slightly more than the stock’s tumble. Investors tracked by Insider Monkey held 18.80% of the firm’s shares on September 30. 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 Riverview Bancorp, Inc. (NASDAQ:RVSB), A. H. Belo Corporation (NYSE:AHC), and Radio One, Inc. (NASDAQ:ROIAK) to gather more data points.
In the eyes of most traders, hedge funds are perceived as worthless, old financial vehicles of the past. While there are more than 8,000 funds in operation at present, our experts hone in on the upper echelon of this club, about 700 funds. These money managers manage bulk of all hedge funds’ total capital, and by shadowing their highest performing equity investments, Insider Monkey has unsheathed a few investment strategies that have historically outrun the market. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, let’s view the recent action regarding Triangle Petroleum Corporation (NYSEMKT:TPLM).
How have hedgies been trading Triangle Petroleum Corporation (NYSEMKT:TPLM)?
Heading into Q4, a total of 14 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 17% boost from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were increasing their holdings significantly (or had already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Southeastern Asset Management, managed by Mason Hawkins, holds the most valuable position in Triangle Petroleum Corporation (NYSEMKT:TPLM). Southeastern Asset Management has a $16 million position in the stock, comprising 0.1% of its 13F portfolio. Sitting in the No. 2 spot is Steel Partners, managed by Warren Lichtenstein, which holds a $1.4 million position; 0.2% of its 13F portfolio is allocated to the stock. Other hedge funds and institutional investors that are bullish contain Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners, D E Shaw, and Israel Englander’s Millennium Management.