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Is Tableau Software Inc (DATA) Worthy of Your Portfolio?

Seeing as Tableau Software Inc (NYSE:DATA) has faced a decline in interest from the aggregate hedge fund industry, logic holds that there is a sect of funds that elected to cut their entire stakes in the third quarter. It’s worth mentioning that Karthik Sarma’s SRS Investment Management cut the largest investment of all the hedgies watched by Insider Monkey, valued at about $48.9 million in stock. Israel Englander’s fund, Millennium Management, also said goodbye to its stock, about $30.5 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 5 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tableau Software Inc (NYSE:DATA) but similarly valued. We will take a look at Synovus Financial Corp. (NYSE:SNV), The Hanover Insurance Group, Inc. (NYSE:THG), SINA Corp (NASDAQ:SINA), and Medical Properties Trust, Inc. (NYSE:MPW). This group of stocks’ market values are similar to DATA’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SNV 21 454718 -1
THG 16 172459 -3
SINA 33 796653 12
MPW 23 211104 11

As you can see these stocks had an average of 23 funds with bullish positions and the average amount invested in these stocks was $409 million. That figure was $899 million in DATA’s case. SINA Corp (NASDAQ:SINA) is the most popular stock in this table. On the other hand The Hanover Insurance Group, Inc. (NYSE:THG) is the least popular one with only 16 bullish hedge fund positions. Tableau Software Inc (NYSE:DATA) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SINA Corp (NASDAQ:SINA) might be a better candidate to consider a long position.

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