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Hedge Funds Are Crazy About Triumph Group Inc (TGI)

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Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds' and successful investors' positions as of the end of the fourth quarter. You can find articles about an individual hedge fund's trades on numerous financial news websites. However, in this article we will take a look at their collective moves over the last 6 years and analyze what the smart money thinks of Triumph Group Inc (NYSE:TGI) based on that data.

Is Triumph Group Inc (NYSE:TGI) a buy right now? Money managers were becoming hopeful. The number of long hedge fund positions advanced by 4 in recent months. Triumph Group Inc (NYSE:TGI) was in 22 hedge funds' portfolios at the end of March. The all time high for this statistic is 26. Our calculations also showed that TGI isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 18 hedge funds in our database with TGI holdings at the end of December.

To most investors, hedge funds are assumed to be worthless, outdated financial tools of yesteryear. While there are greater than 8000 funds trading at the moment, We look at the masters of this club, around 850 funds. It is estimated that this group of investors shepherd bulk of all hedge funds' total capital, and by shadowing their top stock picks, Insider Monkey has come up with a number of investment strategies that have historically beaten the S&P 500 index. Insider Monkey's flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. Also, our monthly newsletter's portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Matthew Hulsizer PEAK6 Capital
Matthew Hulsizer PEAK6 Capital

Matthew Hulsizer of PEAK6 Capital

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, Chuck Schumer recently stated that marijuana legalization will be a Senate priority. So, we are checking out this under the radar stock that will benefit from this. We go through lists like the 10 best battery stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let's take a peek at the key hedge fund action regarding Triumph Group Inc (NYSE:TGI).

Do Hedge Funds Think TGI Is A Good Stock To Buy Now?

At the end of the first quarter, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 22% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards TGI over the last 23 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is TGI A Good Stock To Buy?
Is TGI A Good Stock To Buy?

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Maple Rock Capital, managed by Len Kipp and Xavier Majic, holds the number one position in Triumph Group Inc (NYSE:TGI). Maple Rock Capital has a $43.2 million position in the stock, comprising 6.3% of its 13F portfolio. Coming in second is ACK Asset Management, managed by Richard S. Meisenberg, which holds a $19.8 million position; 7.9% of its 13F portfolio is allocated to the stock. Some other members of the smart money that hold long positions encompass Chuck Royce's Royce & Associates, Herbert Frazier's Hill City Capital and Ken Griffin's Citadel Investment Group. In terms of the portfolio weights assigned to each position ACK Asset Management allocated the biggest weight to Triumph Group Inc (NYSE:TGI), around 7.87% of its 13F portfolio. Maple Rock Capital is also relatively very bullish on the stock, setting aside 6.27 percent of its 13F equity portfolio to TGI.

With a general bullishness amongst the heavyweights, some big names have jumped into Triumph Group Inc (NYSE:TGI) headfirst. Schonfeld Strategic Advisors, managed by Ryan Tolkin (CIO), initiated the largest position in Triumph Group Inc (NYSE:TGI). Schonfeld Strategic Advisors had $9.3 million invested in the company at the end of the quarter. David MacKnight's One Fin Capital Management also made a $8.3 million investment in the stock during the quarter. The other funds with brand new TGI positions are Greg Eisner's Engineers Gate Manager, Matthew Hulsizer's PEAK6 Capital Management, and Paul Tudor Jones's Tudor Investment Corp.

Let's now review hedge fund activity in other stocks similar to Triumph Group Inc (NYSE:TGI). We will take a look at Gracell Biotechnologies Inc. (NASDAQ:GRCL), ConnectOne Bancorp Inc (NASDAQ:CNOB), Akero Therapeutics, Inc. (NASDAQ:AKRO), America's Car-Mart, Inc. (NASDAQ:CRMT), CTS Corporation (NYSE:CTS), MGP Ingredients Inc (NASDAQ:MGPI), and LeMaitre Vascular Inc (NASDAQ:LMAT). This group of stocks' market caps match TGI's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position GRCL,15,185761,15 CNOB,10,35934,-1 AKRO,15,292870,0 CRMT,10,84744,-1 CTS,14,88363,3 MGPI,7,28731,-6 LMAT,10,16013,-2 Average,11.6,104631,1.1 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 11.6 hedge funds with bullish positions and the average amount invested in these stocks was $105 million. That figure was $197 million in TGI's case. Gracell Biotechnologies Inc. (NASDAQ:GRCL) is the most popular stock in this table. On the other hand MGP Ingredients Inc (NASDAQ:MGPI) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Triumph Group Inc (NYSE:TGI) is more popular among hedge funds. Our overall hedge fund sentiment score for TGI is 84.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 23.8% in 2021 through July 16th and still beat the market by 7.7 percentage points. Unfortunately TGI wasn't nearly as popular as these 5 stocks and hedge funds that were betting on TGI were disappointed as the stock returned -5.2% since the end of the first quarter (through 7/16) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.