Twitter Inc (TWTR) Jumps Amid News of Dick Costolo Leaving Board of Directors

How are hedge funds trading Twitter Inc (NYSE:TWTR)?

At the end of March, a total of 64 of the hedge funds tracked by Insider Monkey held long positions in Twitter Inc (NYSE: TWTR), significantly up from 42 a quarter earlier. Furthermore, there was a 72.87% quarter-over-quarter increase in hedge fund holdings to $1.75 billion. This increase is much larger than the 39.62% gain the stock delivered from January 2 to March 31. However, it should be noted that only 5.4% of Twitter’s outstanding stock was owned by these funds at the end of March, which is an indication that smart money is underweight the stock.

John Thaler’s JAT Capital Management was the fund with the largest stake in Twitter Inc (NYSE:TWTR) by March 31, owning 7.26 million shares worth about $363.7 million. Meanwhile, Daniel S. Och’s OZ Management held 4.5 million shares, acquired during the first quarter. Daniel Benton’s Andor Capital Management, Jim Simons’ Renaissance Technologies and David E. Shaw’s D.E. Shaw & Co., L.P. round up the top five shareholders of the company.

Based on the underweight sentiment of hedge funds, we consider that Twitter is not a buy at the moment. The company still has to find a new CEO, who will have to convince the investors that Twitter is capable of sustaining a strong user growth and improve its financial performance.

Disclosure: None