Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Hedge Funds Are Buying Tech Data Corp (TECD)

Page 1 of 2

Is Tech Data Corp (NASDAQ:TECD) a buy here? Prominent investors are taking an optimistic view. The number of long hedge fund positions improved by 1 in recent months.

In the eyes of most shareholders, hedge funds are viewed as worthless, outdated financial tools of the past. While there are greater than 8000 funds with their doors open today, we choose to focus on the leaders of this group, about 450 funds. Most estimates calculate that this group controls the majority of the hedge fund industry’s total capital, and by tracking their highest performing equity investments, we have discovered a number of investment strategies that have historically outperformed the market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have outpaced the S&P 500 index by 23.3 percentage points in 8 months (check out a sample of our picks).

Just as integral, optimistic insider trading sentiment is another way to parse down the investments you’re interested in. There are many reasons for an upper level exec to sell shares of his or her company, but just one, very clear reason why they would buy. Several empirical studies have demonstrated the useful potential of this tactic if investors understand where to look (learn more here).

Now, let’s take a gander at the recent action surrounding Tech Data Corp (NASDAQ:TECD).

What have hedge funds been doing with Tech Data Corp (NASDAQ:TECD)?

At the end of the first quarter, a total of 12 of the hedge funds we track were bullish in this stock, a change of 9% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings meaningfully.

Tech Data Corp (NASDAQ:TECD)Of the funds we track, Ken Fisher’s Fisher Asset Management had the largest position in Tech Data Corp (NASDAQ:TECD), worth close to $51 million, comprising 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Firefly Value Partners, managed by Ryan Heslop and Ariel Warszawski, which held a $46.5 million position; the fund has 5.8% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Cliff Asness’s AQR Capital Management, Chuck Royce’s Royce & Associates and Ken Griffin’s Citadel Investment Group.

As aggregate interest increased, specific money managers were breaking ground themselves. Whitebox Advisors, managed by Andy Redleaf, initiated the largest position in Tech Data Corp (NASDAQ:TECD). Whitebox Advisors had 1.5 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also initiated a $0.5 million position during the quarter. The only other fund with a brand new TECD position is Steven Cohen’s SAC Capital Advisors.

Insider trading activity in Tech Data Corp (NASDAQ:TECD)

Insider purchases made by high-level executives is particularly usable when the company in question has seen transactions within the past six months. Over the last six-month time frame, Tech Data Corp (NASDAQ:TECD) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to Tech Data Corp (NASDAQ:TECD). These stocks are Peerless Systems Corp. (NASDAQ:PRLS), SED International Holdings, Inc. (NYSEAMEX:SED), Wayside Technology Group, Inc. (NASDAQ:WSTG), Navarre Corporation (NASDAQ:NAVR), and Ingram Micro Inc. (NYSE:IM). This group of stocks are in the computers wholesale industry and their market caps resemble TECD’s market cap.

Page 1 of 2
Loading Comments...