Is TNAV A Good Stock To Buy Now?

A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Telenav Inc (NASDAQ:TNAV).

Is TNAV a good stock to buy now? Telenav Inc (NASDAQ:TNAV) investors should pay attention to an increase in activity from the world’s largest hedge funds lately. Telenav Inc (NASDAQ:TNAV) was in 11 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 16. There were 10 hedge funds in our database with TNAV positions at the end of the second quarter. Our calculations also showed that TNAV isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

In today’s marketplace there are a large number of indicators shareholders use to size up their holdings. Two of the most underrated indicators are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the elite hedge fund managers can beat the S&P 500 by a very impressive amount (see the details here).

Gavin Saitowitz of Prelude Capital

Gavin Saitowitz of Prelude Capital

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website. Now we’re going to check out the latest hedge fund action surrounding Telenav Inc (NASDAQ:TNAV).

Do Hedge Funds Think TNAV Is A Good Stock To Buy Now?

Heading into the fourth quarter of 2020, a total of 11 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 10% from the second quarter of 2020. By comparison, 13 hedge funds held shares or bullish call options in TNAV a year ago. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Nokomis Capital, managed by Brett Hendrickson, holds the biggest position in Telenav Inc (NASDAQ:TNAV). Nokomis Capital has a $12.7 million position in the stock, comprising 5.9% of its 13F portfolio. The second largest stake is Renaissance Technologies, with a $8.1 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other peers that are bullish encompass Steven Baughman’s Divisar Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital and John Overdeck and David Siegel’s Two Sigma Advisors. In terms of the portfolio weights assigned to each position Nokomis Capital allocated the biggest weight to Telenav Inc (NASDAQ:TNAV), around 5.88% of its 13F portfolio. Divisar Capital is also relatively very bullish on the stock, dishing out 2.19 percent of its 13F equity portfolio to TNAV.

Consequently, key money managers have jumped into Telenav Inc (NASDAQ:TNAV) headfirst. Millennium Management, managed by Israel Englander, initiated the most outsized position in Telenav Inc (NASDAQ:TNAV). Millennium Management had $0.5 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital) also made a $0.2 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Telenav Inc (NASDAQ:TNAV) but similarly valued. These stocks are NewAge, Inc. (NASDAQ:NBEV), Ampio Pharmaceuticals, Inc. (NYSE:AMPE), Kindred Biosciences Inc (NASDAQ:KIN), GasLog Partners LP (NYSE:GLOP), Earthstone Energy, Inc. (NYSE:ESTE), Team, Inc. (NYSE:TISI), and Axcella Health Inc. (NASDAQ:AXLA). This group of stocks’ market valuations resemble TNAV’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NBEV 4 712 -1
AMPE 2 67 1
KIN 11 50510 -1
GLOP 5 638 -2
ESTE 3 3571 -3
TISI 15 45652 3
AXLA 3 672 -2
Average 6.1 14546 -0.7

View table here if you experience formatting issues.

As you can see these stocks had an average of 6.1 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $31 million in TNAV’s case. Team, Inc. (NYSE:TISI) is the most popular stock in this table. On the other hand Ampio Pharmaceuticals, Inc. (NYSE:AMPE) is the least popular one with only 2 bullish hedge fund positions. Telenav Inc (NASDAQ:TNAV) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TNAV is 61.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 32.9% in 2020 through December 8th and still beat the market by 16.2 percentage points. Hedge funds were also right about betting on TNAV as the stock returned 31.7% since the end of Q3 (through 12/8) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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