Hedge Funds Are Selling Teradata Corporation (TDC)

Because Teradata Corporation (NYSE:TDC) has witnessed a bearish sentiment from the smart money, it’s safe to say that there was a specific group of funds that elected to cut their entire stakes by the end of the third quarter. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management dropped the biggest position of the 700 funds followed by Insider Monkey, comprising an estimated $11.2 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund dropped about $9.5 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell by 8 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Teradata Corporation (NYSE:TDC) but similarly valued. We will take a look at Weingarten Realty Investors (NYSE:WRI), Visteon Corp (NYSE:VC), Old Republic International Corporation (NYSE:ORI), and Juno Therapeutics Inc (NASDAQ:JUNO). This group of stocks’ market valuations is closest to Teradata Corporation (NYSE:TDC)’s market valuation.

As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $454 million. That figure was $864 million in Teradata Corporation (NYSE:TDC)’s case. Visteon Corp (NYSE:VC) is the most popular stock in this table. On the other hand, Weingarten Realty Investors (NYSE:WRI) is the least popular one with only 13 bullish hedge fund positions. Teradata Corporation (NYSE:TDC) 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, Visteon Corp (NYSE:VC) might be a better candidate to consider a long position.