Hedge Funds Are Buying Trinity Industries Inc (TRN)

Now, key hedge funds have been driving this bullishness. 13D Management, run by Kenneth Squire, created the largest position in Trinity Industries Inc (NYSE:TRN). According to its latest 13F filing, the fund had $6.5 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $5.7 million investment in the stock during the quarter. The other funds with brand new TRN positions are Ken Griffin’s Citadel Investment Group, Ken Griffin’s Citadel Investment Group, and Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Trinity Industries Inc (NYSE:TRN) but similarly valued. These stocks are Corporate Office Properties Trust (NYSE:OFC), Jack in the Box Inc. (NASDAQ:JACK), Prospect Capital Corporation (NASDAQ:PSEC), and Superior Energy Services, Inc. (NYSE:SPN). All of these stocks’ market caps match TRN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OFC 10 109391 -3
JACK 27 422534 -1
PSEC 13 14556 5
SPN 25 235093 -2

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $195 million. That figure was $554 million in TRN’s case. Jack in the Box Inc. (NASDAQ:JACK) is the most popular stock in this table. On the other hand Corporate Office Properties Trust (NYSE:OFC) is the least popular one with only 10 bullish hedge fund positions. Trinity Industries Inc (NYSE:TRN) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard JACK might be a better candidate to consider a long position.

Disclosure: none.