Is Turquoise Hill Resources Ltd (NYSE:TRQ) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.
Is Turquoise Hill Resources Ltd ready to rally soon? The smart money is in a pessimistic mood. The number of bullish hedge fund bets fell by 4 in recent months. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Huntington Ingalls Industries Inc (NYSE:HII), The Ultimate Software Group, Inc. (NASDAQ:ULTI), and Lennox International Inc. (NYSE:LII) to gather more data points.
With all of this in mind, we’re going to view the latest action regarding Turquoise Hill Resources Ltd (NYSE:TRQ).
What have hedge funds been doing with Turquoise Hill Resources Ltd (NYSE:TRQ)?
Heading into Q4, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of -16% from the second quarter. With hedge funds’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Pentwater Capital Management, managed by Matthew Halbower, holds the largest position in Turquoise Hill Resources Ltd (NYSE:TRQ). Pentwater Capital Management has a $297.6 million position in the stock, comprising 2.6% of its 13F portfolio. The second most bullish fund manager is Anchor Bolt Capital, managed by Robert Polak, which holds a $38.9 million position; 1.3% of its 13F portfolio is allocated to the stock. Other professional money managers with similar optimism include Gifford Combs’ Dalton Investments, David Iben’s Kopernik Global Investors and Benjamin A. Smith’s Laurion Capital Management.