Is TeleTech Holdings, Inc. (NASDAQ:TTEC) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They fail miserably sometimes, but historically their consensus stock picks outperformed the market after adjusting for known risk factors.
Is TeleTech Holdings, Inc. (NASDAQ:TTEC) a healthy stock for your portfolio? Prominent investors are getting more optimistic. The number of bullish hedge fund bets increased by 2 in recent months. TTEC was in 16 hedge funds’ portfolios at the end of the third quarter of 2015. There were 14 hedge funds in our database with TTEC holdings at the end of the previous quarter. At the end of this article we will also compare TTEC to other stocks, including Forward Air Corporation (NASDAQ:FWRD), Progress Software Corporation (NASDAQ:PRGS), and Popeyes Louisiana Kitchen Inc (NASDAQ:PLKI) to get a better sense of its popularity.
Now, let’s check out the latest action regarding TeleTech Holdings, Inc. (NASDAQ:TTEC).
How have hedgies been trading TeleTech Holdings, Inc. (NASDAQ:TTEC)?
At the end of the third quarter, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 14% from the second quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Jim Simons’s Renaissance Technologies has the most valuable position in TeleTech Holdings, Inc. (NASDAQ:TTEC), worth close to $7.6 million, comprising less than 0.1% of its total 13F portfolio. Sitting at the No. 2 spot is Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, holding a $3.1 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Other peers with similar optimism comprise Cliff Asness’s AQR Capital Management, Israel Englander’s Millennium Management and Joshua Nash’s Ulysses Management.
With a general bullishness amongst the heavyweights, specific money managers have jumped into TeleTech Holdings, Inc. (NASDAQ:TTEC) headfirst. Gotham Asset Management, managed by Joel Greenblatt, initiated the largest position in TeleTech Holdings, Inc. (NASDAQ:TTEC). Gotham Asset Management had $1.2 million invested in the company at the end of the quarter. Neil Chriss’s Hutchin Hill Capital also initiated a $0.5 million position during the quarter. The following funds were also among the new TTEC investors: Mike Vranos’s Ellington and Dmitry Balyasny’s Balyasny Asset Management.
Let’s check out hedge fund activity in other stocks similar to TeleTech Holdings, Inc. (NASDAQ:TTEC). These stocks are Forward Air Corporation (NASDAQ:FWRD), Progress Software Corporation (NASDAQ:PRGS), Popeyes Louisiana Kitchen Inc (NASDAQ:PLKI), and 3D Systems Corporation (NYSE:DDD). This group of stocks’ market caps are similar to TTEC’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $126 million. In the case of TTEC, that figure was significantly lower at $24 million. Forward Air Corporation (NASDAQ:FWRD) is the most popular stock in this table. On the other hand Popeyes Louisiana Kitchen Inc (NASDAQ:PLKI) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks TeleTech Holdings, Inc. (NASDAQ:TTEC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.