Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Here’s What Hedge Funds Think About Taylor Morrison Home Corp (TMHC)

We at Insider Monkey have gone over 738 13F filings that hedge funds and famous value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article we look at what those investors think of Taylor Morrison Home Corp (NYSE:TMHC).

Taylor Morrison Home Corp (NYSE:TMHC) was in 12 hedge funds’ portfolios at the end of March. TMHC investors should be aware of a decrease in hedge fund sentiment of late. There were 15 hedge funds in our database with TMHC positions at the end of the previous quarter. Our calculations also showed that TMHC isn’t among the 30 most popular stocks among hedge funds.

Today there are tons of methods stock traders employ to evaluate publicly traded companies. Two of the most underrated methods are hedge fund and insider trading interest. We have shown that, historically, those who follow the top picks of the best investment managers can outclass their index-focused peers by a superb amount (see the details here).

Matthew Lindenbaum Basswood Capital

Let’s analyze the recent hedge fund action regarding Taylor Morrison Home Corp (NYSE:TMHC).

What have hedge funds been doing with Taylor Morrison Home Corp (NYSE:TMHC)?

Heading into the second quarter of 2019, a total of 12 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -20% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TMHC over the last 15 quarters. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).


More specifically, Echo Street Capital Management was the largest shareholder of Taylor Morrison Home Corp (NYSE:TMHC), with a stake worth $50.3 million reported as of the end of March. Trailing Echo Street Capital Management was Greenhaven Associates, which amassed a stake valued at $48.9 million. Polar Capital, Balyasny Asset Management, and Basswood Capital were also very fond of the stock, giving the stock large weights in their portfolios.

Because Taylor Morrison Home Corp (NYSE:TMHC) has faced bearish sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few hedgies that elected to cut their full holdings by the end of the third quarter. Interestingly, John Khoury’s Long Pond Capital dumped the largest position of the 700 funds tracked by Insider Monkey, valued at an estimated $59.1 million in stock. Michael Platt and William Reeves’s fund, BlueCrest Capital Mgmt., also dumped its stock, about $0.3 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 3 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to Taylor Morrison Home Corp (NYSE:TMHC). These stocks are Atlantica Yield plc (NASDAQ:AY), Inphi Corporation (NYSE:IPHI), Oasis Petroleum Inc. (NYSE:OAS), and BBVA Banco Frances S.A. (NYSE:BFR). This group of stocks’ market caps are similar to TMHC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AY 21 239050 -1
IPHI 21 164662 0
OAS 27 276839 -4
BFR 15 29497 2
Average 21 177512 -0.75

View table here if you experience formatting issues.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $178 million. That figure was $185 million in TMHC’s case. Oasis Petroleum Inc. (NYSE:OAS) is the most popular stock in this table. On the other hand BBVA Banco Frances S.A. (NYSE:BFR) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Taylor Morrison Home Corp (NYSE:TMHC) is even less popular than BFR. Hedge funds clearly dropped the ball on TMHC as the stock delivered strong returns, though hedge funds’ consensus picks still generated respectable returns. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. A small number of hedge funds were also right about betting on TMHC as the stock returned 13.2% during the same period and outperformed the market by an even larger margin.

Disclosure: None. This article was originally published at Insider Monkey.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.