Tile Shop Hldgs, Inc. (NASDAQ:TTS) was in 6 hedge funds’ portfolio at the end of December. TTS investors should be aware of an increase in hedge fund interest of late. There were 3 hedge funds in our database with TTS holdings at the end of the previous quarter.
In today’s marketplace, there are plenty of indicators market participants can use to monitor stocks. Some of the most under-the-radar are hedge fund and insider trading sentiment. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite investment managers can outperform the broader indices by a superb margin (see just how much).
Equally as important, positive insider trading activity is another way to parse down the marketplace. Obviously, there are plenty of motivations for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if you understand what to do (learn more here).
Keeping this in mind, it’s important to take a gander at the latest action regarding Tile Shop Hldgs, Inc. (NASDAQ:TTS).
What does the smart money think about Tile Shop Hldgs, Inc. (NASDAQ:TTS)?
At year’s end, a total of 6 of the hedge funds we track were long in this stock, a change of 100% from the previous quarter. With hedgies’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their stakes meaningfully.
Of the funds we track, Phill Gross and Robert Atchinson’s Adage Capital Management had the biggest position in Tile Shop Hldgs, Inc. (NASDAQ:TTS), worth close to $5.9 million, comprising less than 0.1%% of its total 13F portfolio. The second largest stake is held by Charles Anderson of Fox Point Capital Management, with a $4.2 million position; 1% of its 13F portfolio is allocated to the stock. Other peers with similar optimism include James Pallotta’s Raptor Capital Management, Donald Chiboucis’s Columbus Circle Investors and Richard Driehaus’s Driehaus Capital.
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Adage Capital Management, managed by Phill Gross and Robert Atchinson, assembled the most outsized position in Tile Shop Hldgs, Inc. (NASDAQ:TTS). Adage Capital Management had 5.9 million invested in the company at the end of the quarter. Charles Anderson’s Fox Point Capital Management also made a $4.2 million investment in the stock during the quarter. The only other fund with a new position in the stock is Donald Chiboucis’s Columbus Circle Investors.
How are insiders trading Tile Shop Hldgs, Inc. (NASDAQ:TTS)?
Insider trading activity, especially when it’s bullish, is best served when the company in focus has experienced transactions within the past half-year. Over the latest half-year time period, Tile Shop Hldgs, Inc. (NASDAQ:TTS) has seen zero unique insiders buying, and 6 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Tile Shop Hldgs, Inc. (NASDAQ:TTS). These stocks are Sabine Royalty Trust (NYSE:SBR), Dorchester Minerals LP (NASDAQ:DMLP), ViewPoint Financial Group (NASDAQ:VPFG), Main Street Capital Corporation (NYSE:MAIN), and Solar Capital Ltd. (NASDAQ:SLRC). This group of stocks are the members of the diversified investments industry and their market caps are similar to TTS’s market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Sabine Royalty Trust (NYSE:SBR)||5||0||0|
|Dorchester Minerals LP (NASDAQ:DMLP)||4||2||0|
|ViewPoint Financial Group (NASDAQ:VPFG)||8||5||0|
|Main Street Capital Corporation (NYSE:MAIN)||4||10||2|
|Solar Capital Ltd. (NASDAQ:SLRC)||7||0||0|
With the returns shown by our time-tested strategies, everyday investors must always watch hedge fund and insider trading sentiment, and Tile Shop Hldgs, Inc. (NASDAQ:TTS) is an important part of this process.