At Insider Monkey, we track around 765 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on, can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see the details here).
Tesla Misses the Mark
Tesla Motors Inc (NASDAQ:TSLA) shares are flat this morning after the company reported a disappointing second quarter but provided upbeat guidance. For the three months ended June 30, Tesla lost $1.06 per share and reported revenue of $1.56 billion, missing estimates by $0.54 per share and $60 million respectively. Revenue rose by 30% year-over-year as Model S sales inched up by 3% quarter-over-quarter. Adjusted automotive margin inched up by 1.9 percentage points to 21.9%. Supporting shares of Tesla today is the company’s guidance. Elon Musk and Co believe that Tesla is on track to deliver 50,000 vehicles in the latter half of 2016, which if met, would match almost all of Tesla’s deliveries last year. Of the 766 actively-reporting hedge funds that we track, 39 owned $1.08 billion worth of Tesla Motors Inc (NASDAQ:TSLA) shares on March 31, up from 29 funds and $837.44 million respectively on December 31.
Travelport’s Also Sloughs Off Results With Strong Guidance
Travelport Worldwide Ltd (NYSE:TVPT) is 4% in the green today after reporting mixed second quarter results. For the period, Travelport earned $0.28 per share on revenue of $605.91 million, missing bottom-line estimates by a penny per share and beating the top-line target by $12.1 million. Net revenue increased by 9% year-over-year while adjusted EBITDA inched up by 1% to $139 million. Management reiterated its net revenue outlook of $2.35 billion-to-$2.4o billion, and adjusted EBITDA guidance of $565 million-to-$580 million for the full year. In addition, management raised its adjusted income per diluted share guidance to $1.16-to-$1.24 from the previous range of $1.12-to-$1.20. 31 funds that we track were long Travelport Worldwide Ltd (NYSE:TVPT) at the end of the first quarter, down by five funds from a quarter earlier.
On the next page we’ll find out why Louisiana-Pacific Corporation, Viacom, and Restaurant Brands International are garnering attention this morning.