Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Twitter Inc (NYSE:TWTR) Is in the Spotlight Today

Twitter Inc (NYSE:TWTR) shares are in the spotlight after Doug Kass tweeted:

High above the Alps my Gnome continues to hear activism talk on $TWTR. I believe this one from my little Gnome and have been adding.

Mr. Kass is the President of Seabreeze Parnters Management Inc, and has been in the hedge fund business a long time. Until 1996, Kass was a senior portfolio manager at the billion dollar investment partnership Omega Advisors. By virtue of his experience, Kass has many hedge fund/activist friends.

Given Facebook and Snap’s rally and Twitter Inc (NYSE:TWTR)’s own slide into the $14-$15 range, it isn’t surprising that some investors have become rather anxious to see an uptick in either the stock or the social media company’s fundamentals. Although there is no guarantee that an activist will appear, an activist could have multiple avenues at lifting Twitter’s share price, including asking for more cost cuts, or asking Twitter to sell some assets. As has been the case before, rumors about a potential activist could just be rumors and not facts, however, and Twitter’s stock could remain dependent on sentiment and management’s execution.

What Does The Smart Money Sentiment Say?

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 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

According to our data, the smart money was slightly less bullish on Twitter in the fourth quarter. Of the 742 top funds we track, 41 were long shares of Twitter Inc (NYSE:TWTR) at the end of the fourth quarter, down 6 funds from the previous quarter. James Dondero‘s Highland Capital Management went the opposite way of the crowd and raised its stake by 46% to over 6.1 million shares.

The Bottom Line

More traders are watching Twitter Inc (NYSE:TWTR) due to Doug Kass’ comments and the stock could bounce if an activist appears.

Follow Twitter Inc. (NYSE:TWTR)
Trade (NYSE:TWTR) Now!

Disclosure:None

Twitter, TWTR, Tweet