Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow over 700 of the best-performing investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Teradata Corporation (NYSE:TDC), so let’s take a closer look at the sentiment that surrounds it in the current quarter.
Teradata Corporation (NYSE:TDC) has experienced an increase in enthusiasm from smart money of late. Our calculations also showed that TDC isn’t among the 30 most popular stocks among hedge funds.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 24% through December 3, 2018. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
We’re going to check out the latest hedge fund action surrounding Teradata Corporation (NYSE:TDC).
Hedge fund activity in Teradata Corporation (NYSE:TDC)
At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10% from the previous quarter. On the other hand, there were a total of 21 hedge funds with a bullish position in TDC at the beginning of this year. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Praesidium Investment Management Company held the most valuable stake in Teradata Corporation (NYSE:TDC), which was worth $54.5 million at the end of the third quarter. On the second spot was Balyasny Asset Management which amassed $52.4 million worth of shares. Moreover, Renaissance Technologies, Balyasny Asset Management, and Millennium Management were also bullish on Teradata Corporation (NYSE:TDC), allocating a large percentage of their portfolios to this stock.
As industrywide interest jumped, key hedge funds have been driving this bullishness. Praesidium Investment Management Company, managed by Kevin Oram and Peter Uddo, established the most outsized position in Teradata Corporation (NYSE:TDC). Praesidium Investment Management Company had $54.5 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also initiated a $13.2 million position during the quarter. The other funds with brand new TDC positions are Peter Muller’s PDT Partners, David Costen Haley’s HBK Investments, and Matthew Hulsizer’s PEAK6 Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Teradata Corporation (NYSE:TDC) but similarly valued. We will take a look at Medidata Solutions Inc (NASDAQ:MDSO), Agios Pharmaceuticals Inc (NASDAQ:AGIO), Associated Banc Corp (NYSE:ASB), and Enstar Group Ltd. (NASDAQ:ESGR). This group of stocks’ market valuations are closest to TDC’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MDSO | 14 | 136899 | 3 |
| AGIO | 22 | 372204 | -1 |
| ASB | 17 | 297669 | 4 |
| ESGR | 10 | 673382 | -1 |
| Average | 15.75 | 370039 | 1.25 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $370 million. That figure was $254 million in TDC’s case. Agios Pharmaceuticals Inc (NASDAQ:AGIO) is the most popular stock in this table. On the other hand Enstar Group Ltd. (NASDAQ:ESGR) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Teradata Corporation (NYSE:TDC) 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.
Disclosure: None. This article was originally published at Insider Monkey.
