Hedge Funds Are Betting On Tsakos Energy Navigation Ltd. (TNP)

Concerns over a shift in Fed’s easy monetary policy have hit several hedge funds hard during the third quarter. A number of sectors are in correction territory. More importantly, Russell 2000 ETF (IWM) underperformed the larger S&P 500 ETF (SPY) by more than 14 percentage points between June 25, 2015 and October 30, 2015. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were paring back their overall exposure and this is one of the factors behind the recent movements in major indices. In this article, we will take a closer look at hedge fund sentiment towards Tsakos Energy Navigation Ltd. (NYSE:TNP).

Tsakos Energy Navigation Ltd. (NYSE:TNP) has seen an increase in hedge fund interest recently. TNP was in 19 hedge funds’ portfolios at the end of the third quarter of 2015. There were 16 hedge funds in our database with TNP positions at the end of the previous quarter. At the end of this article we will also compare TNP to other stocks including Genomic Health, Inc. (NASDAQ:GHDX), Oritani Financial Corp. (NASDAQ:ORIT), and Wingstop Inc (NASDAQ:WING) to get a better sense of its popularity.

Follow Tsakos Energy Navigation Ltd (NYSE:TNP)

Today there are tons of signals shareholders use to assess publicly traded companies. A pair of the best signals are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the top picks of the elite fund managers can outperform the market by a very impressive margin (see the details here).

With all of this in mind, let’s view the latest action encompassing Tsakos Energy Navigation Ltd. (NYSE:TNP).

What does the smart money think about Tsakos Energy Navigation Ltd. (NYSE:TNP)?

At the end of the third quarter, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 19% from the second quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Brian Taylor’s Pine River Capital Management has the number one position in Tsakos Energy Navigation Ltd. (NYSE:TNP), worth close to $34 million, comprising 0.5% of its total 13F portfolio. Coming in second is James Dinan of York Capital Management, with a $21.4 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other peers that are bullish comprise Mark T. Gallogly’s Centerbridge Partners, Jim Simons’ Renaissance Technologies and David Iben’s Kopernik Global Investors.

As industrywide interest jumped, key money managers have jumped into Tsakos Energy Navigation Ltd. (NYSE:TNP) headfirst. York Capital Management, managed by James Dinan, created the most valuable position in Tsakos Energy Navigation Ltd. (NYSE:TNP). York Capital Management had $21.4 million invested in the company at the end of the quarter. Louis Bacon’s Moore Global Investments also made a $1.7 million investment in the stock during the quarter. The following funds were also among the new TNP investors: Paul Marshall and Ian Wace’s Marshall Wace LLP, Andy Redleaf’s Whitebox Advisors, and Thomas Bailard’s Bailard Inc.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Tsakos Energy Navigation Ltd. (NYSE:TNP) but similarly valued. We will take a look at Genomic Health, Inc. (NASDAQ:GHDX), Oritani Financial Corp. (NASDAQ:ORIT), Wingstop Inc (NASDAQ:WING), and Manchester United PLC (NYSE:MANU). This group of stocks’ market valuations match TNP’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GHDX 13 404189 -2
ORIT 12 40620 -1
WING 10 21395 -4
MANU 9 92626 -1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $140 million. That figure was $113 million in TNP’s case. Genomic Health, Inc. (NASDAQ:GHDX) is the most popular stock in this table. On the other hand Manchester United PLC (NYSE:MANU) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Tsakos Energy Navigation Ltd. (NYSE:TNP) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.