The worries about the election and the ongoing uncertainty about the path of interest-rate increases have been keeping investors on the sidelines. Of course, most hedge funds and other asset managers have been underperforming main stock market indices since the middle of 2015. Interestingly though, smaller-cap stocks registered their best performance relative to the large-capitalization stocks since the end of the June quarter, suggesting that this may be the best time to take a cue from their stock picks. In fact, the Russell 2000 Index gained more than 15% since the beginning of the third quarter, while the Standard and Poor’s 500 benchmark returned less than 6%. This article will lay out and discuss the hedge fund and institutional investor sentiment towards Third Point Reinsurance Ltd (NYSE:TPRE).
Third Point Reinsurance Ltd (NYSE:TPRE) has experienced a decrease in hedge fund sentiment recently. TPRE was in 10 hedge funds’ portfolios at the end of September. There were 13 hedge funds in our database with TPRE holdings at the end of the previous quarter. At the end of this article we will also compare TPRE to other stocks including SunPower Corporation (NASDAQ:SPWR), Terreno Realty Corporation (NYSE:TRNO), and AVG Technologies NV (NYSE:AVG) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
How have hedgies been trading Third Point Reinsurance Ltd (NYSE:TPRE)?
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a fall of 23% from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards TPRE over the last 5 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Polar Capital, led by Brian Ashford-Russell and Tim Woolley, holds the most valuable position in Third Point Reinsurance Ltd (NYSE:TPRE). Polar Capital has a $12 million position in the stock. On Polar Capital’s heels is Renaissance Technologies, one of the largest hedge funds in the world, which holds a $3.9 million position. Other peers that are bullish include Israel Englander’s Millennium Management, Ken Griffin’s Citadel Investment Group and Dmitry Balyasny’s Balyasny Asset Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.