Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Tribune Media Co (NYSE:TRCO).
Is Tribune Media Co (NYSE:TRCO) going to take off soon? The smart money is taking a pessimistic view. The number of bullish hedge fund positions shrunk by 10 lately. TRCO was in 28 hedge funds’ portfolios at the end of September. There were 38 hedge funds in our database with TRCO holdings at the end of the previous quarter. 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 TreeHouse Foods Inc. (NYSE:THS), Dolby Laboratories, Inc. (NYSE:DLB), and Nice Systems Ltd (ADR) (NASDAQ:NICE) to gather more data points.
According to most stock holders, hedge funds are assumed to be worthless, outdated investment tools of yesteryear. While there are more than an 8000 funds with their doors open at present, Our experts look at the leaders of this group, approximately 700 funds. Most estimates calculate that this group of people administer the majority of the hedge fund industry’s total capital, and by shadowing their finest equity investments, Insider Monkey has figured out numerous investment strategies that have historically outstripped the market. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per year for a decade in their back tests.
Keeping this in mind, we’re going to analyze the key action surrounding Tribune Media Co (NYSE:TRCO).
How have hedgies been trading Tribune Media Co (NYSE:TRCO)?
At the end of the third quarter, a total of 28 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -26% from the previous quarter. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Howard Marks’ Oaktree Capital Management has the most valuable position in Tribune Media Co (NYSE:TRCO), worth close to $503.6 million, accounting for 6.6% of its total 13F portfolio. Sitting at the No. 2 spot is John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co, with a $237.4 million position; 17.4% of its 13F portfolio is allocated to the stock. Other peers that are bullish encompass Mason Hawkins’ Southeastern Asset Management, Leon Cooperman’s Omega Advisors and David Costen Haley’s HBK Investments.