The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. In this article we are going to take a look at smart money sentiment towards Talend S.A. (NASDAQ:TLND).
Is Talend S.A. (NASDAQ:TLND) a buy right now? Prominent investors are getting more bullish. The number of long hedge fund bets inched up by 5 lately. Our calculations also showed that TLND isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks). TLND was in 29 hedge funds' portfolios at the end of the first quarter of 2020. There were 24 hedge funds in our database with TLND holdings at the end of the previous quarter. Video: Watch our video about the top 5 most popular hedge fund stocks.
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 58 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that'll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 36% through May 18th. That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out trades like this one as well as this tiny lithium play. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind we're going to review the key hedge fund action encompassing Talend S.A. (NASDAQ:TLND).
How have hedgies been trading Talend S.A. (NASDAQ:TLND)?
At the end of the first quarter, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 21% from the fourth quarter of 2019. By comparison, 32 hedge funds held shares or bullish call options in TLND a year ago. So, let's see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Talend S.A. (NASDAQ:TLND) was held by Praesidium Investment Management Company, which reported holding $39.5 million worth of stock at the end of September. It was followed by Sunriver Management with a $34.2 million position. Other investors bullish on the company included 40 North Management, Hawk Ridge Management, and Light Street Capital. In terms of the portfolio weights assigned to each position Sunriver Management allocated the biggest weight to Talend S.A. (NASDAQ:TLND), around 5.99% of its 13F portfolio. North Run Capital is also relatively very bullish on the stock, setting aside 5.44 percent of its 13F equity portfolio to TLND.
As one would reasonably expect, some big names have jumped into Talend S.A. (NASDAQ:TLND) headfirst. 40 North Management, managed by David S. Winter and David J. Millstone, assembled the most valuable position in Talend S.A. (NASDAQ:TLND). 40 North Management had $30.3 million invested in the company at the end of the quarter. David Brown's Hawk Ridge Management also initiated a $28.4 million position during the quarter. The following funds were also among the new TLND investors: David Rosen's Rubric Capital Management, Spencer M. Waxman's Shannon River Fund Management, and Len Kipp and Xavier Majic's Maple Rock Capital.
Let's go over hedge fund activity in other stocks - not necessarily in the same industry as Talend S.A. (NASDAQ:TLND) but similarly valued. These stocks are Third Point Reinsurance Ltd (NYSE:TPRE), Novavax, Inc. (NASDAQ:NVAX), INTL Fcstone Inc (NASDAQ:INTL), and BRP Inc. (NASDAQ:DOOO). This group of stocks' market values are similar to TLND's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TPRE,17,40013,-3 NVAX,4,11335,1 INTL,10,83773,1 DOOO,10,52931,1 Average,10.25,47013,0 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 10.25 hedge funds with bullish positions and the average amount invested in these stocks was $47 million. That figure was $333 million in TLND's case. Third Point Reinsurance Ltd (NYSE:TPRE) is the most popular stock in this table. On the other hand Novavax, Inc. (NASDAQ:NVAX) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Talend S.A. (NASDAQ:TLND) is more popular among hedge funds. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks returned 8.3% in 2020 through the end of May but still managed to beat the market by 13.2 percentage points. Hedge funds were also right about betting on TLND as the stock returned 37.4% so far in Q2 (through the end of May) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.
Disclosure: None. This article was originally published at Insider Monkey.