Hedge funds and large money managers usually invest with a focus on the long-term horizon and, therefore, short-lived dips on the charts, usually don’t make them change their opinion towards a company. This time it may be different.Hedge fund investor letters indicated that they are cutting their overall exposure, closing out some position and doubling down on others. Let’s take a look at the hedge fund sentiment towards Time Warner Cable Inc (NYSE:TWC) to find out whether it was one of their high conviction long-term ideas.
Time Warner Cable Inc (NYSE:TWC) is currently in the process of being acquired by Charter Communications, Inc. (NASDAQ:CHTR) and as the deal is clearing regulatory and other hurdles, the number of bullish hedge fund positions decreased by four during the fourth quarter. In this article we are going to take a closer look at the funds that still hold shares of TWC and, at the end of this article, we will also compare it to other stocks, including National Grid plc (ADR) (NYSE:NGG), Baidu.com, Inc. (ADR) (NASDAQ:BIDU), and salesforce.com, inc. (NYSE:CRM) to get a better sense of its popularity.
Today there are numerous gauges market participants can use to analyze their stock investments. A pair of the most under-the-radar gauges are hedge fund and insider trading activity. Our researchers have shown that, historically, those who follow the best picks of the top hedge fund managers can trounce their index-focused peers by a healthy amount (see the details here).
Keeping this in mind, let’s go over the latest action regarding Time Warner Cable Inc (NYSE:TWC).
Hedge fund activity in Time Warner Cable Inc (NYSE:TWC)
Heading into 2016, a total of 103 of the hedge funds tracked by Insider Monkey held long positions in this stock, a decline of 4% from the previous quarter. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who amassed large positions in the company at the end of the last year.
Of the funds tracked by Insider Monkey, Soroban Capital Partners, managed by Eric W. Mandelblatt, holds the most valuable position in Time Warner Cable Inc (NYSE:TWC), worth $1.56 billion position and comprising 11.3% of its 13F portfolio. On Soroban Capital Partners’s heels is Paulson & Co, led by John Paulson, holding a $1.09 billion stake; the fund has 6.5% of its 13F portfolio invested in the stock. Other peers that are bullish comprise Matthew Halbower’s Pentwater Capital Management, John Armitage’s Egerton Capital Limited and Doug Silverman and Alexander Klabin’s Senator Investment Group.