As one would reasonably expect, specific money managers were breaking ground themselves. Melvin Capital Management, managed by Gabriel Plotkin, assembled the biggest position in Tractor Supply Company (NASDAQ:TSCO). Melvin Capital Management had $23.2 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also initiated a $4.6 million position during the quarter. The following funds were also among the new TSCO investors: Jim Simons’s Renaissance Technologies, Michael Platt and William Reeves’s BlueCrest Capital Mgmt., and John Overdeck and David Siegel’s Two Sigma Advisors.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Tractor Supply Company (NASDAQ:TSCO) but similarly valued. We will take a look at Cheniere Energy, Inc. (NYSEAMEX:LNG), Agilent Technologies Inc. (NYSE:A), Freescale Semiconductor Ltd (NYSE:FSL), and TransDigm Group Incorporated (NYSE:TDG). This group of stocks’ market caps are similar to TSCO’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 45.5 hedge funds with bullish positions and the average amount invested in these stocks was $3,118 million. That figure was $237 million in TSCO’s case. Cheniere Energy, Inc. (NYSEAMEX:LNG) is the most popular stock in this table. On the other hand Freescale Semiconductor Ltd (NYSE:FSL) is the least popular one with only 23 bullish hedge fund positions. Tractor Supply Company (NASDAQ:TSCO) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LNG might be a better candidate to consider a long position.