Billionaire hedge fund managers such as Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks.
Tilly’s Inc (NYSE:TLYS) has experienced an increase in hedge fund interest in recent months. TLYS was in 11 hedge funds’ portfolios at the end of the third quarter of 2016. There were 7 hedge funds in our database with TLYS holdings at the end of the previous quarter. At the end of this article we will also compare TLYS to other stocks including Limoneira Company (NASDAQ:LMNR), Tuesday Morning Corporation (NASDAQ:TUES), and Clearfield, Inc. (NASDAQ:CLFD) to get a better sense of its popularity.
Follow Tilly's Inc. (NYSE:TLYS)
Follow Tilly's Inc. (NYSE:TLYS)
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.
With all of this in mind, let’s take a look at the fresh action regarding Tilly’s Inc (NYSE:TLYS).
What does the smart money think about Tilly’s Inc (NYSE:TLYS)?
Heading into the fourth quarter of 2016, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 57% from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards TLYS over the last 5 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Renaissance Technologies, one of the biggest hedge funds in the world, holds the most valuable position in Tilly’s Inc (NYSE:TLYS). Renaissance Technologies has a $6.2 million position in the stock, comprising less than 0.1% of its 13F portfolio. Coming in second is AQR Capital Management, led by Cliff Asness, holding a $1 million position; less than 0.1% of its 13F portfolio is allocated to the company. Remaining professional money managers that are bullish include John Overdeck and David Siegel’s Two Sigma Advisors, and D E Shaw. 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.