The TJX Companies, Inc. (NYSE:TJX) was in 37 hedge funds’ portfolio at the end of December. tjx investors should be aware of a decrease in hedge fund interest recently. There were 41 hedge funds in our database with tjx holdings at the end of the previous quarter.
If you’d ask most market participants, hedge funds are assumed to be underperforming, outdated investment vehicles of the past. While there are more than 8000 funds in operation at present, we at Insider Monkey hone in on the masters of this club, close to 450 funds. Most estimates calculate that this group oversees the lion’s share of the hedge fund industry’s total asset base, and by keeping an eye on their best stock picks, we have spotted a few investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per year for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (check out a sample of our picks).
Equally as key, bullish insider trading activity is a second way to parse down the world of equities. There are plenty of incentives for a corporate insider to get rid of shares of his or her company, but only one, very obvious reason why they would buy. Plenty of empirical studies have demonstrated the useful potential of this strategy if shareholders know where to look (learn more here).
With all of this in mind, we’re going to take a look at the latest action regarding The TJX Companies, Inc. (NYSE:TJX).
How are hedge funds trading The TJX Companies, Inc. (NYSE:TJX)?
Heading into 2013, a total of 37 of the hedge funds we track were long in this stock, a change of -10% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of key hedge fund managers who were upping their holdings substantially.
According to our comprehensive database, Ric Dillon’s Diamond Hill Capital had the most valuable position in The TJX Companies, Inc. (NYSE:TJX), worth close to $134 million billion, comprising 1.5% of its total 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $93 million position; 1.5% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include D. E. Shaw’s D E Shaw, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and Cliff Asness’s AQR Capital Management.
Seeing as The TJX Companies, Inc. (NYSE:TJX) has experienced declining sentiment from the smart money, we can see that there is a sect of hedge funds who sold off their entire stakes in Q4. It’s worth mentioning that Louis Navellier’s Navellier & Associates said goodbye to the largest stake of all the hedgies we watch, valued at an estimated $71 million in stock.. SAC Subsidiary’s fund, Sigma Capital Management, also dumped its stock, about $17 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 4 funds in Q4.
What have insiders been doing with The TJX Companies, Inc. (NYSE:TJX)?
Insider trading activity, especially when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past 180 days. Over the latest 180-day time period, The TJX Companies, Inc. (NYSE:TJX) has experienced zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
With the returns demonstrated by Insider Monkey’s strategies, everyday investors should always keep an eye on hedge fund and insider trading sentiment, and The TJX Companies, Inc. (NYSE:TJX) is an important part of this process.
Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.