The 700+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the first quarter, which unveil their equity positions as of March 31. 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 Tucows Inc. (NASDAQ:TCX).
In the 21st century investor’s toolkit there are numerous formulas stock market investors have at their disposal to assess their holdings. A duo of the less utilized formulas are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the elite investment managers can outclass the broader indices by a superb margin (see the details here).
We're going to check out the fresh hedge fund action surrounding Tucows Inc. (NASDAQ:TCX).
What have hedge funds been doing with Tucows Inc. (NASDAQ:TCX)?
At the end of the first quarter, a total of 10 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 43% from one quarter earlier. On the other hand, there were a total of 9 hedge funds with a bullish position in TCX a year ago. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Tucows Inc. (NASDAQ:TCX) was held by Renaissance Technologies, which reported holding $41.1 million worth of stock at the end of March. It was followed by Osmium Partners with a $13 million position. Other investors bullish on the company included Arrowstreet Capital, Citadel Investment Group, and PEAK6 Capital Management.
With a general bullishness amongst the heavyweights, specific money managers have jumped into Tucows Inc. (NASDAQ:TCX) headfirst. Citadel Investment Group, managed by Ken Griffin, initiated the most valuable position in Tucows Inc. (NASDAQ:TCX). Citadel Investment Group had $0.9 million invested in the company at the end of the quarter. Israel Englander's Millennium Management also initiated a $0.5 million position during the quarter. The other funds with new positions in the stock are D. E. Shaw's D E Shaw, D. E. Shaw's D E Shaw, and Noam Gottesman's GLG Partners.
Let's go over hedge fund activity in other stocks similar to Tucows Inc. (NASDAQ:TCX). These stocks are Douglas Dynamics Inc (NYSE:PLOW), CSW Industrials, Inc. (NASDAQ:CSWI), Eidos Therapeutics, Inc. (NASDAQ:EIDX), and Waitr Holdings Inc. (NASDAQ:WTRH). All of these stocks' market caps are similar to TCX's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PLOW,11,13278,4 CSWI,19,59286,3 EIDX,8,191566,0 WTRH,22,233629,4 Average,15,124440,2.75 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $124 million. That figure was $66 million in TCX's case. Waitr Holdings Inc. (NASDAQ:WTRH) is the most popular stock in this table. On the other hand Eidos Therapeutics, Inc. (NASDAQ:EIDX) is the least popular one with only 8 bullish hedge fund positions. Tucows Inc. (NASDAQ:TCX) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we'd rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 20 most popular stocks among hedge funds returned 6.2% in Q2 through June 19th and outperformed the S&P 500 ETF (SPY) by nearly 3 percentage points. Unfortunately TCX wasn't nearly as popular as these 20 stocks (hedge fund sentiment was quite bearish); TCX investors were disappointed as the stock returned -25.7% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as 13 of these stocks already outperformed the market so far in Q2.
Disclosure: None. This article was originally published at Insider Monkey.