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Hedge Funds Are Crazy About Tsakos Energy Navigation Ltd. (TNP)

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article we look at what those investors think of Tsakos Energy Navigation Ltd. (NYSE:TNP).

Tsakos Energy Navigation Ltd. (NYSE:TNP) has experienced an increase in activity from the world’s largest hedge funds recently. Our calculations also showed that TNP isn’t among the 30 most popular stocks among hedge funds.

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 24% through December 3, 2018. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

YORK CAPITAL MANAGEMENT

We’re going to go over the recent hedge fund action encompassing Tsakos Energy Navigation Ltd. (NYSE:TNP).

Hedge fund activity in Tsakos Energy Navigation Ltd. (NYSE:TNP)

At Q3’s end, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 20% from the second quarter of 2018. The graph below displays the number of hedge funds with bullish position in TNP over the last 13 quarters. With hedgies’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were increasing their stakes substantially (or already accumulated large positions).

No of Hedge Funds With TNP Positions

Among these funds, Kopernik Global Investors held the most valuable stake in Tsakos Energy Navigation Ltd. (NYSE:TNP), which was worth $21.6 million at the end of the third quarter. On the second spot was Renaissance Technologies which amassed $7.5 million worth of shares. Moreover, York Capital Management, Carlson Capital, and Arrowstreet Capital were also bullish on Tsakos Energy Navigation Ltd. (NYSE:TNP), allocating a large percentage of their portfolios to this stock.

Now, specific money managers have been driving this bullishness. Carlson Capital, managed by Clint Carlson, created the largest position in Tsakos Energy Navigation Ltd. (NYSE:TNP). Carlson Capital had $1 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also initiated a $0.4 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.

Let’s check out hedge fund activity in other stocks similar to Tsakos Energy Navigation Ltd. (NYSE:TNP). These stocks are Nantkwest Inc (NASDAQ:NK), NL Industries, Inc. (NYSE:NL), Radiant Logistics, Inc. (NYSEAMEX:RLGT), and Safe Bulkers, Inc. (NYSE:SB). This group of stocks’ market caps are similar to TNP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NK 6 5886 0
NL 4 1348 -1
RLGT 10 9344 6
SB 8 15115 -1
Average 7 7923 1

View table here if you experience formatting issues.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $32 million in TNP’s case. Radiant Logistics, Inc. (NYSEAMEX:RLGT) is the most popular stock in this table. On the other hand NL Industries, Inc. (NYSE:NL) is the least popular one with only 4 bullish hedge fund positions. Tsakos Energy Navigation Ltd. (NYSE:TNP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RLGT might be a better candidate to consider a long position.

Disclosure: None. This article was originally published at Insider Monkey.

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