Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Triton International Limited (NYSE:TRTN).
Is Triton International Limited (NYSE:TRTN) an outstanding stock to buy now? Prominent investors were becoming more confident. The number of long hedge fund positions went up by 7 recently. Triton International Limited (NYSE:TRTN) was in 30 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 23. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that TRTN isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the 21st century investor’s toolkit there are numerous formulas stock traders employ to evaluate their stock investments. A pair of the best formulas are hedge fund and insider trading sentiment. Our experts have shown that, historically, those who follow the best picks of the top hedge fund managers can trounce the market by a healthy margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
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. Keeping this in mind we’re going to take a peek at the new hedge fund action regarding Triton International Limited (NYSE:TRTN).
Do Hedge Funds Think TRTN Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 30 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 30% from the fourth quarter of 2020. By comparison, 12 hedge funds held shares or bullish call options in TRTN a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
When looking at the institutional investors followed by Insider Monkey, Edward Goodnow’s Goodnow Investment Group has the number one position in Triton International Limited (NYSE:TRTN), worth close to $105.2 million, comprising 9.6% of its total 13F portfolio. The second largest stake is held by Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, holding a $31.3 million position; less than 0.1%% of its 13F portfolio is allocated to the stock. Some other members of the smart money that hold long positions include Noam Gottesman’s GLG Partners, Jeff Osher’s No Street Capital and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Goodnow Investment Group allocated the biggest weight to Triton International Limited (NYSE:TRTN), around 9.6% of its 13F portfolio. Second Curve Capital is also relatively very bullish on the stock, earmarking 3.64 percent of its 13F equity portfolio to TRTN.
Now, some big names were breaking ground themselves. Scopus Asset Management, managed by Alexander Mitchell, established the largest position in Triton International Limited (NYSE:TRTN). Scopus Asset Management had $3.8 million invested in the company at the end of the quarter. Tom Brown’s Second Curve Capital also made a $2.6 million investment in the stock during the quarter. The other funds with brand new TRTN positions are Donald Sussman’s Paloma Partners, Greg Eisner’s Engineers Gate Manager, and Steve Cohen’s Point72 Asset Management.
Let’s also examine hedge fund activity in other stocks similar to Triton International Limited (NYSE:TRTN). We will take a look at Vicor Corp (NASDAQ:VICR), Datto Holding Corp. (NYSE:MSP), Scientific Games Corp (NASDAQ:SGMS), Box, Inc. (NYSE:BOX), Stamps.com Inc. (NASDAQ:STMP), AAON, Inc. (NASDAQ:AAON), and Sabra Health Care REIT Inc (NASDAQ:SBRA). This group of stocks’ market values match TRTN’s market value.
|No of HFs with positions
|Total Value of HF Positions (x1000)
|Change in HF Position
View table here if you experience formatting issues.
As you can see these stocks had an average of 24.1 hedge funds with bullish positions and the average amount invested in these stocks was $743 million. That figure was $264 million in TRTN’s case. Box, Inc. (NYSE:BOX) is the most popular stock in this table. On the other hand Datto Holding Corp. (NYSE:MSP) is the least popular one with only 14 bullish hedge fund positions. Triton International Limited (NYSE:TRTN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TRTN is 67.6. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 22.8% in 2021 through July 2nd and beat the market again by 6 percentage points. Unfortunately TRTN wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TRTN were disappointed as the stock returned -5.6% since the end of March (through 7/2) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.