At Insider Monkey we track the activity of some of the best-performing hedge funds like Appaloosa Management, Baupost, and Third Point because we determined that some of the stocks that they are collectively bullish on can help us generate returns above the broader indices. Out of thousands of stocks that hedge funds invest in, small-caps can provide the best returns over the long term due to the fact that these companies are less efficiently priced and are usually under the radars of mass-media, analysts and dumb money. This is why we follow the smart money moves in the small-cap space.
Tutor Perini Corp (NYSE:TPC) was in 13 hedge funds’ portfolios at the end of the third quarter of 2016. TPC shareholders have witnessed an increase in hedge fund sentiment lately. There were 12 hedge funds in our database with TPC positions at the end of the previous quarter. At the end of this article we will also compare TPC to other stocks including CONE Midstream Partners LP (NYSE:CNNX), HFF, Inc. (NYSE:HF), and Endologix, Inc. (NASDAQ:ELGX) to get a better sense of its popularity.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.
What have hedge funds been doing with Tutor Perini Corp (NYSE:TPC)?
At Q3’s end, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, an 8% rise from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards TPC over the last 5 quarters, which has been volatile, though within a narrow range. With hedge funds’ capital changing hands, there exists a select group of noteworthy hedge fund managers who were upping their stakes considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, William Harnisch’s Peconic Partners LLC has the number one position in Tutor Perini Corp (NYSE:TPC), worth close to $25.6 million, accounting for 3.2% of its total 13F portfolio. Coming in second is Israel Englander’s Millennium Management, with an $8 million position. Other peers with similar optimism encompass Cliff Asness’ AQR Capital Management, Ken Griffin’s Citadel Investment Group, and John Overdeck and David Siegel’s Two Sigma Advisors. We should note that Peconic Partners LLC is among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.