The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing more than 730 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of June 28th, 2019. What do these smart investors think about Trustmark Corporation (NASDAQ:TRMK)?
Is Trustmark Corporation (NASDAQ:TRMK) a great stock to buy now? Money managers are getting more optimistic. The number of long hedge fund bets increased by 3 recently. Our calculations also showed that TRMK isn’t among the 30 most popular stocks among hedge funds (see the video below). TRMK was in 14 hedge funds’ portfolios at the end of June. There were 11 hedge funds in our database with TRMK positions at the end of the previous quarter.
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn’t rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. Let’s view the latest hedge fund action encompassing Trustmark Corporation (NASDAQ:TRMK).
How are hedge funds trading Trustmark Corporation (NASDAQ:TRMK)?
Heading into the third quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey were long this stock, a change of 27% from the previous quarter. The graph below displays the number of hedge funds with bullish position in TRMK over the last 16 quarters. With hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Renaissance Technologies has the largest position in Trustmark Corporation (NASDAQ:TRMK), worth close to $5.3 million, accounting for less than 0.1%% of its total 13F portfolio. Sitting at the No. 2 spot is Ken Griffin of Citadel Investment Group, with a $4.5 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other members of the smart money that are bullish consist of Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Noam Gottesman’s GLG Partners and John Overdeck and David Siegel’s Two Sigma Advisors.
Now, some big names were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, initiated the biggest position in Trustmark Corporation (NASDAQ:TRMK). Arrowstreet Capital had $4 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also made a $0.5 million investment in the stock during the quarter. The other funds with brand new TRMK positions are Benjamin A. Smith’s Laurion Capital Management and Steve Cohen’s Point72 Asset Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Trustmark Corporation (NASDAQ:TRMK) but similarly valued. These stocks are Select Medical Holdings Corporation (NYSE:SEM), Terex Corporation (NYSE:TEX), Cannae Holdings, Inc. (NYSE:CNNE), and TTEC Holdings, Inc. (NASDAQ:TTEC). This group of stocks’ market caps are similar to TRMK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SEM | 17 | 131929 | -4 |
| TEX | 15 | 260697 | -6 |
| CNNE | 19 | 275079 | -5 |
| TTEC | 17 | 43423 | 2 |
| Average | 17 | 177782 | -3.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $178 million. That figure was $28 million in TRMK’s case. Cannae Holdings, Inc. (NYSE:CNNE) is the most popular stock in this table. On the other hand Terex Corporation (NYSE:TEX) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Trustmark Corporation (NASDAQ:TRMK) is even less popular than TEX. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. A small number of hedge funds were also right about betting on TRMK, though not to the same extent, as the stock returned 3.3% during the third quarter and outperformed the market as well.
Disclosure: None. This article was originally published at Insider Monkey.
