The Insider Monkey team has completed processing the quarterly 13F filings for the June quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards TC Energy Corporation (NYSE:TRP).
Is TC Energy Corporation (NYSE:TRP) a buy here? Money managers were reducing their bets on the stock. The number of bullish hedge fund positions decreased by 3 in recent months. TC Energy Corporation (NYSE:TRP) was in 22 hedge funds’ portfolios at the end of June. The all time high for this statistic is 25. Our calculations also showed that TRP isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
To the average investor there are several indicators investors have at their disposal to grade their stock investments. Two of the most underrated indicators are hedge fund and insider trading activity. Our experts have shown that, historically, those who follow the top picks of the top investment managers can outpace the market by a healthy margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.
Fred DiSanto of Ancora Advisors
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let’s check out the fresh hedge fund action encompassing TC Energy Corporation (NYSE:TRP).
Do Hedge Funds Think TRP Is A Good Stock To Buy Now?
At the end of the second quarter, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -12% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TRP over the last 24 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in TC Energy Corporation (NYSE:TRP) was held by Marshall Wace LLP, which reported holding $41.1 million worth of stock at the end of June. It was followed by Heathbridge Capital Management with a $33.1 million position. Other investors bullish on the company included SIR Capital Management, Heronetta Management, and NewGen Asset Management. In terms of the portfolio weights assigned to each position Heathbridge Capital Management allocated the biggest weight to TC Energy Corporation (NYSE:TRP), around 8.89% of its 13F portfolio. Heronetta Management is also relatively very bullish on the stock, dishing out 5.44 percent of its 13F equity portfolio to TRP.
Judging by the fact that TC Energy Corporation (NYSE:TRP) has faced a decline in interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of fund managers that slashed their full holdings by the end of the second quarter. At the top of the heap, Steve Cohen’s Point72 Asset Management dropped the largest investment of the 750 funds tracked by Insider Monkey, totaling an estimated $16.5 million in stock, and D. E. Shaw’s D E Shaw was right behind this move, as the fund said goodbye to about $4 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 3 funds by the end of the second quarter.
Let’s go over hedge fund activity in other stocks similar to TC Energy Corporation (NYSE:TRP). These stocks are Align Technology, Inc. (NASDAQ:ALGN), Monster Beverage Corp (NASDAQ:MNST), eBay Inc (NASDAQ:EBAY), Marvell Technology Group Ltd. (NASDAQ:MRVL), Vodafone Group Plc (NASDAQ:VOD), Veeva Systems Inc (NYSE:VEEV), and Dow Inc. (NYSE:DOW). This group of stocks’ market values are similar to TRP’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ALGN | 57 | 2689837 | 8 |
| MNST | 46 | 2310929 | 1 |
| EBAY | 39 | 3126079 | -12 |
| MRVL | 51 | 1390237 | 18 |
| VOD | 17 | 703238 | 0 |
| VEEV | 44 | 1544061 | 5 |
| DOW | 40 | 518571 | -1 |
| Average | 42 | 1754707 | 2.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 42 hedge funds with bullish positions and the average amount invested in these stocks was $1755 million. That figure was $118 million in TRP’s case. Align Technology, Inc. (NASDAQ:ALGN) is the most popular stock in this table. On the other hand Vodafone Group Plc (NASDAQ:VOD) is the least popular one with only 17 bullish hedge fund positions. TC Energy Corporation (NYSE:TRP) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TRP is 34.7. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. A small number of hedge funds were also right about betting on TRP as the stock returned 13.1% since the end of the second quarter (through 10/22) and outperformed the market by an even larger margin.
Follow Tc Energy Corporation (NYSE:TRP)
Follow Tc Energy Corporation (NYSE:TRP)
Suggested Articles:
- 10 Best Stocks to Buy According to Chris James’ Engine No. 1
- 10 Top Hedge Funds Focusing on ESG and Impact Investing
- Top 10 Energy Sector Stocks for 2021
Disclosure: None. This article was originally published at Insider Monkey.
