Most investors tend to think that hedge funds and other asset managers are worthless, as they cannot beat even simple index fund portfolios. In fact, most people expect hedge funds to compete with and outperform the bull market that we have witnessed over the past few years. However, hedge funds are generally partially hedged and aim at delivering attractive risk-adjusted returns rather than following the ups and downs of equity markets, hoping that they will outperform the broader market. Our research shows that hedge funds do have great stock picking skills, so let’s take a glance at the smart money sentiment towards Tahoe Resources Inc (NYSE:TAHO).
Hedge fund interest in Tahoe Resources Inc (NYSE:TAHO) 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 TAHO to other stocks, including The St. Joe Company (NYSE:JOE), Ferrellgas Partners, L.P. (NYSE:FGP), and Mellanox Technologies, Ltd. (NASDAQ:MLNX) to get a better sense of its popularity.
In the eyes of most investors, hedge funds are seen as underperforming, old investment tools of the past. While there are over 8000 funds in operation at the moment, Our researchers choose to focus on the upper echelon of this club, around 700 funds. These hedge fund managers shepherd the lion’s share of the hedge fund industry’s total asset base, and by paying attention to their highest performing investments, Insider Monkey has deciphered numerous investment strategies that have historically outpaced Mr. Market. Insider Monkey’s small-cap hedge fund strategy outperformed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Now, we’re going to review the new action encompassing Tahoe Resources Inc (NYSE:TAHO).
What have hedge funds been doing with Tahoe Resources Inc (NYSE:TAHO)?
Heading into Q4, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the previous quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes meaningfully (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Philippe Jabre’s Jabre Capital Partners has the number one position in Tahoe Resources Inc (NYSE:TAHO), worth close to $11.9 million, corresponding to 2.2% of its total 13F portfolio. On Jabre Capital Partners’s heels is D E Shaw, managed by D. E. Shaw, which holds an $2.6 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Other members of the smart money that are bullish encompass Israel Englander’s Millennium Management, Eric Sprott’s Sprott Asset Management and Jim Simons’s Renaissance Technologies.