Hedge funds and other investment firms run by legendary investors like Israel Englander and Ray Dalio are entrusted to manage billions of dollars of accredited investors’ money because they are without peer in the resources they use to identify the best investments for their chosen investment horizon. Moreover, they are more willing to invest a greater amount of their resources in small-cap stocks than big brokerage houses, and this is often where they generate their outperformance, which is why we pay particular attention to their best ideas in this space.
Is Travelport Worldwide Ltd (NYSE:TVPT) the right pick for your portfolio? Hedge funds are selling. The number of long hedge fund positions decreased by 2 recently. TVPT was in 26 hedge funds’ portfolios at the end of the third quarter of 2016. There were 28 hedge funds in our database with TVPT holdings at the end of the previous quarter. At the end of this article we will also compare TVPT to other stocks including CBL & Associates Properties, Inc. (NYSE:CBL), Aaron’s, Inc. (NYSE:AAN), and Agios Pharmaceuticals Inc (NASDAQ:AGIO) to get a better sense of its popularity.
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With all of this in mind, let’s check out the fresh action encompassing Travelport Worldwide Ltd (NYSE:TVPT).
How are hedge funds trading Travelport Worldwide Ltd (NYSE:TVPT)?
At the end of the third quarter, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a drop of 7% from the previous quarter. With hedge funds’ capital changing hands, there exists a few noteworthy hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Solus Alternative Asset Management, run by Christopher Pucillo, holds the number one position in Travelport Worldwide Ltd (NYSE:TVPT). According to regulatory filings, the fund has an $89.6 million position in the stock, comprising 24.9% of its 13F portfolio. On Solus Alternative Asset Management’s heels is Parag Vora of HG Vora Capital Management, with a $45.1 million position; the fund has 5.8% of its 13F portfolio invested in the stock. Some other peers with similar optimism comprise Amit Nitin Doshi’s Harbor Spring Capital, George Soros’s Soros Fund Management and Will Cook’s Sunriver Management.
Because Travelport Worldwide Ltd (NYSE:TVPT) has faced bearish sentiment from the smart money, it’s easy to see that there lies a certain “tier” of fund managers who were dropping their entire stakes in the third quarter. Intriguingly, John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co dropped the biggest position of the 700 funds monitored by Insider Monkey, worth an estimated $103 million in stock, and Wayne Cooperman’s Cobalt Capital Management was right behind this move, as the fund cut about $5.6 million worth of TVPT shares. These transactions are important to note, as total hedge fund interest fell by 2 funds in the third quarter.
Let’s check out hedge fund activity in other stocks similar to Travelport Worldwide Ltd (NYSE:TVPT). These stocks are CBL & Associates Properties, Inc. (NYSE:CBL), Aaron’s, Inc. (NYSE:AAN), Agios Pharmaceuticals Inc (NASDAQ:AGIO), and FIRSTSERVICE CORPORATION (TSE:FSV). All of these stocks’ market caps are similar to TVPT’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 16 hedge funds with bullish positions and the average amount invested in these stocks was $162 million. That figure was $466 million in TVPT’s case. Aaron’s, Inc. (NYSE:AAN) is the most popular stock in this table. On the other hand FIRSTSERVICE CORPORATION (TSE:FSV) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Travelport Worldwide Ltd (NYSE:TVPT) 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.