Teradata Corporation (NYSE:TDC) was in 25 hedge funds’ portfolio at the end of the first quarter of 2013. TDC investors should pay attention to an increase in enthusiasm from smart money of late. There were 24 hedge funds in our database with TDC positions at the end of the previous quarter.
In the financial world, there are plenty of gauges shareholders can use to watch publicly traded companies. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the best hedge fund managers can trounce the market by a significant amount (see just how much).
Just as important, optimistic insider trading sentiment is a second way to break down the investments you’re interested in. There are a number of reasons for an executive to drop shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the impressive potential of this method if shareholders know where to look (learn more here).
Now, let’s take a peek at the recent action regarding Teradata Corporation (NYSE:TDC).
What does the smart money think about Teradata Corporation (NYSE:TDC)?
In preparation for this quarter, a total of 25 of the hedge funds we track held long positions in this stock, a change of 4% from one quarter earlier. With hedgies’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.
According to our comprehensive database, Generation Investment Management, managed by David Blood and Al Gore, holds the most valuable position in Teradata Corporation (NYSE:TDC). Generation Investment Management has a $107.2 million position in the stock, comprising 2.2% of its 13F portfolio. Sitting at the No. 2 spot is Renaissance Technologies, managed by Jim Simons, which held a $75.9 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other peers with similar optimism include Thomas Steyer’s Farallon Capital, Bill Miller’s Legg Mason Capital Management and Panayotis Takis Sparaggis’s Alkeon Capital Management.
As aggregate interest increased, key money managers have jumped into Teradata Corporation (NYSE:TDC) headfirst. Generation Investment Management, managed by David Blood and Al Gore, assembled the most valuable position in Teradata Corporation (NYSE:TDC). Generation Investment Management had 107.2 million invested in the company at the end of the quarter. Thomas Steyer’s Farallon Capital also initiated a $75.2 million position during the quarter. The following funds were also among the new TDC investors: Bill Miller’s Legg Mason Capital Management, Dmitry Balyasny’s Balyasny Asset Management, and Michael R. Weisberg’s Crestwood Capital Management.
What have insiders been doing with Teradata Corporation (NYSE:TDC)?
Insider purchases made by high-level executives is at its handiest when the company in question has experienced transactions within the past 180 days. Over the last six-month time period, Teradata Corporation (NYSE:TDC) has seen zero unique insiders purchasing, and 4 insider sales (see the details of insider trades here).
Let’s also review hedge fund and insider activity in other stocks similar to Teradata Corporation (NYSE:TDC). These stocks are International Business Machines Corp. (NYSE:IBM), Silicon Graphics International Corp (NASDAQ:SGI), Cray Inc. (NASDAQ:CRAY), , and Hewlett-Packard Company (NYSE:HPQ). All of these stocks are in the diversified computer systems industry and their market caps are closest to TDC’s market cap.