Is Terreno Realty Corporation (TRNO) A Good Stock To Buy?

Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds’ and investors’ positions as of the end of the fourth quarter. You can find write-ups about an individual hedge fund’s trades on numerous financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Terreno Realty Corporation (NYSE:TRNO) based on that data.

Terreno Realty Corporation (NYSE:TRNO) has experienced a decrease in activity from the world’s largest hedge funds in recent months. Our calculations also showed that trno isn’t among the 30 most popular stocks among hedge funds.

If you’d ask most market participants, hedge funds are viewed as underperforming, old investment tools of yesteryear. While there are greater than 8000 funds with their doors open at the moment, Our researchers choose to focus on the moguls of this club, around 750 funds. It is estimated that this group of investors preside over bulk of the smart money’s total asset base, and by keeping an eye on their matchless stock picks, Insider Monkey has spotted numerous investment strategies that have historically outstripped the market. Insider Monkey’s flagship hedge fund strategy outstripped the S&P 500 index by nearly 5 percentage points per year since its inception in May 2014 through early November 2018. We were able to generate large returns even by identifying short candidates. Our portfolio of short stocks lost 27.5% since February 2017 (through March 12th) even though the market was up nearly 25% during the same period. We just shared a list of 6 short targets in our latest quarterly update and they are already down an average of 6% in less than a month.

Ken Griffin

We’re going to take a peek at the fresh hedge fund action regarding Terreno Realty Corporation (NYSE:TRNO).

Hedge fund activity in Terreno Realty Corporation (NYSE:TRNO)

At Q4’s end, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a change of -17% from the previous quarter. By comparison, 7 hedge funds held shares or bullish call options in TRNO a year ago. With hedgies’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).

No of Hedge Funds with TRNO Positions

The largest stake in Terreno Realty Corporation (NYSE:TRNO) was held by Impax Asset Management, which reported holding $8.9 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $5.5 million position. Other investors bullish on the company included Millennium Management, D E Shaw, and Citadel Investment Group.

Seeing as Terreno Realty Corporation (NYSE:TRNO) has experienced a decline in interest from hedge fund managers, logic holds that there exists a select few funds who sold off their full holdings heading into Q3. Intriguingly, Paul Marshall and Ian Wace’s Marshall Wace LLP said goodbye to the biggest position of the “upper crust” of funds monitored by Insider Monkey, comprising about $17.8 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund cut about $0.6 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds heading into Q3.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Terreno Realty Corporation (NYSE:TRNO) but similarly valued. These stocks are MGE Energy, Inc. (NASDAQ:MGEE), Mantech International Corp (NASDAQ:MANT), Select Medical Holdings Corporation (NYSE:SEM), and Avalara, Inc. (NYSE:AVLR). This group of stocks’ market caps match TRNO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MGEE 12 33681 4
MANT 10 7768 -4
SEM 19 153809 0
AVLR 14 535698 -1
Average 13.75 182739 -0.25

View table here if you experience formatting issues.

As you can see these stocks had an average of 13.75 hedge funds with bullish positions and the average amount invested in these stocks was $183 million. That figure was $29 million in TRNO’s case. Select Medical Holdings Corporation (NYSE:SEM) is the most popular stock in this table. On the other hand Mantech International Corp (NASDAQ:MANT) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Terreno Realty Corporation (NYSE:TRNO) is even less popular than MANT. Our calculations showed that top 15 most popular stocks) among hedge funds returned 24.2% through April 22nd and outperformed the S&P 500 ETF (SPY) by more than 7 percentage points. A small number of hedge funds were also right about betting on TRNO, though not to the same extent, as the stock returned 22.3% and outperformed the market as well.

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