TiVo Inc. (NASDAQ:TIVO) was in 25 hedge funds’ portfolio at the end of December. TIVO investors should pay attention to an increase in support from the world’s most elite money managers recently. There were 20 hedge funds in our database with TIVO positions at the end of the previous quarter.
According to most stock holders, hedge funds are viewed as underperforming, old investment tools of the past. While there are over 8000 funds with their doors open at the moment, we hone in on the leaders of this group, close to 450 funds. It is widely believed that this group has its hands on the majority of the hedge fund industry’s total capital, and by watching their highest performing picks, we have deciphered a number of investment strategies that have historically outstripped the S&P 500 index. Our small-cap hedge fund strategy outstripped the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 25 percentage points in 6.5 month (see the details here).
Equally as important, bullish insider trading sentiment is a second way to parse down the financial markets. Just as you’d expect, there are many stimuli for an insider to sell shares of his or her company, but just one, very simple reason why they would buy. Various academic studies have demonstrated the impressive potential of this tactic if shareholders understand where to look (learn more here).
Consequently, we’re going to take a look at the key action encompassing TiVo Inc. (NASDAQ:TIVO).
How are hedge funds trading TiVo Inc. (NASDAQ:TIVO)?
In preparation for this year, a total of 25 of the hedge funds we track held long positions in this stock, a change of 25% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were upping their stakes considerably.
When looking at the hedgies we track, SAC Capital Advisors, managed by Steven Cohen, holds the biggest position in TiVo Inc. (NASDAQ:TIVO). SAC Capital Advisors has a $95 million billion position in the stock, comprising 0.5% of its 13F portfolio. Sitting at the No. 2 spot is Spencer M. Waxman of Shannon River Fund Management, with a $46 million position; the fund has 6.1% of its 13F portfolio invested in the stock. Some other hedge funds that are bullish include Scott Fine and Peter Richards’s Empire Capital Management, Leon Cooperman’s Omega Advisors and Ken Griffin’s Citadel Investment Group.
With a general bullishness amongst the heavyweights, key hedge funds were breaking ground themselves. Kingdon Capital, managed by Mark Kingdon, initiated the most valuable position in TiVo Inc. (NASDAQ:TIVO). Kingdon Capital had 23 million invested in the company at the end of the quarter. Sander Gerber’s Hudson Bay Capital Management also made a $5 million investment in the stock during the quarter. The other funds with new positions in the stock are Neil Chriss’s Hutchin Hill Capital, Eric Semler’s TCS Capital Management, and Paul Hudson’s Glade Brook Capital Partners.
What do corporate executives and insiders think about TiVo Inc. (NASDAQ:TIVO)?
Insider purchases made by high-level executives is most useful when the company we’re looking at has experienced transactions within the past half-year. Over the last six-month time period, TiVo Inc. (NASDAQ:TIVO) has experienced zero unique insiders purchasing, and 6 insider sales (see the details of insider trades here).
With the returns shown by our studies, retail investors must always monitor hedge fund and insider trading activity, and TiVo Inc. (NASDAQ:TIVO) shareholders fit into this picture quite nicely.
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