U.S. Markets open in 4 hrs 50 mins

Hedge Funds Are Dumping Triton International Limited (TRTN)

Nina Todic

The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of June 28. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Triton International Limited (NYSE:TRTN).

Is Triton International Limited (NYSE:TRTN) a bargain? Investors who are in the know are reducing their bets on the stock. The number of bullish hedge fund bets decreased by 4 lately. Our calculations also showed that TRTN isn't among the 30 most popular stocks among hedge funds (view video below). TRTN was in 14 hedge funds' portfolios at the end of June. There were 18 hedge funds in our database with TRTN positions at the end of the previous quarter. Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.

5 Most Popular Stocks Among Hedge Funds

In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey's flagship best performing hedge funds strategy returned 25.8% year to date (through May 30th) and outperformed the market even though it draws its stock picks among small-cap stocks. This strategy also outperformed the market by 40 percentage points since its inception (see the details here). That's why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

Matthew Hulsizer PEAK6 Capital

Unlike former hedge manager, Dr. Steve Sjuggerud, who is convinced Dow will soar past 40000, our long-short investment strategy doesn't rely on bull markets to deliver double digit returns. We only rely on hedge fund buy/sell signals. We're going to take a peek at the latest hedge fund action surrounding Triton International Limited (NYSE:TRTN).

How have hedgies been trading Triton International Limited (NYSE:TRTN)?

Heading into the third quarter of 2019, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -22% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in TRTN over the last 16 quarters. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with TRTN Positions

The largest stake in Triton International Limited (NYSE:TRTN) was held by Spindletop Capital, which reported holding $7.7 million worth of stock at the end of March. It was followed by Citadel Investment Group with a $4.6 million position. Other investors bullish on the company included Renaissance Technologies, Arrowstreet Capital, and PEAK6 Capital Management.

Due to the fact that Triton International Limited (NYSE:TRTN) has faced falling interest from the entirety of the hedge funds we track, it's safe to say that there is a sect of money managers that elected to cut their full holdings heading into Q3. At the top of the heap, Benjamin A. Smith's Laurion Capital Management cut the largest investment of the 750 funds tracked by Insider Monkey, comprising about $12.6 million in stock, and Tom Brown's Second Curve Capital was right behind this move, as the fund dumped about $2.9 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 4 funds heading into Q3.

Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Triton International Limited (NYSE:TRTN) but similarly valued. These stocks are Turquoise Hill Resources Ltd (NYSE:TRQ), Columbia Property Trust Inc (NYSE:CXP), Hillenbrand, Inc. (NYSE:HI), and YETI Holdings, Inc. (NYSE:YETI). This group of stocks' market valuations are closest to TRTN's market valuation.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TRQ,20,666843,3 CXP,12,59497,-3 HI,18,57614,-2 YETI,12,65998,-2 Average,15.5,212488,-1 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $212 million. That figure was $32 million in TRTN's case. Turquoise Hill Resources Ltd (NYSE:TRQ) is the most popular stock in this table. On the other hand Columbia Property Trust Inc (NYSE:CXP) is the least popular one with only 12 bullish hedge fund positions. Triton International Limited (NYSE:TRTN) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 20 most popular stocks among hedge funds returned 24.4% in 2019 through September 30th and outperformed the S&P 500 ETF (SPY) by 4 percentage points. A small number of hedge funds were also right about betting on TRTN, though not to the same extent, as the stock returned 5% during the third quarter and outperformed the market.

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

Related Content