The successful funds run by legendary investors such as Dan Loeb and David Tepper make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don’t follow. Because of their pay structures, they have strong incentive to do the research necessary to beat the market. That’s why we pay close attention to what they think in small cap stocks. In this article, we take a closer look at Teligent Inc (NASDAQ:TLGT) from the perspective of those successful funds.
Hedge fund interest in Teligent Inc (NASDAQ:TLGT) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare TLGT to other stocks including Gold Resource Corporation (NYSEAMEX:GORO), Neuroderm Ltd (NASDAQ:NDRM), and Resolute Energy Corp (NYSE:REN) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Now, let’s go over the recent action encompassing Teligent Inc (NASDAQ:TLGT).
What have hedge funds been doing with Teligent Inc (NASDAQ:TLGT)?
At the end of the third quarter, a total of 7 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards TLGT over the last 5 quarters. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Broadfin Capital, led by Kevin Kotler, holds the biggest position in Teligent Inc (NASDAQ:TLGT). According to regulatory filings, the fund has a $16.7 million position in the stock, comprising 1.5% of its 13F portfolio. On Broadfin Capital’s heels is venBio Select Advisor, led by Behzad Aghazadeh, which holds a $12.4 million position; the fund has 2.2% of its 13F portfolio invested in the stock. Other peers that hold long positions comprise Principal Global Investors’s Columbus Circle Investors, Philip Hempleman’s Ardsley Partners and D E Shaw, one of the largest hedge funds in the world. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.