Is Time Warner Cable Inc (NYSE:TWC) a great investment today? Investors who are in the know are becoming less confident. The number of bullish hedge fund bets were cut by 4 lately. TWC was in 84 hedge funds’ portfolio at the end of September. There were 88 hedge funds in our database with TWC holdings at the end of the previous quarter. However, it isn’t all bad news. Time Warner Cable Inc (NYSE:TWC) is still one of the most popular stocks among hedge funds and respected fund managers like Eric Mindich, Paul Singer, and James Dinan initiated brand new positions in the stock during the quarter. Does it make sense to pay attention to hedge fund moves in stocks?
If you’d ask most investors, hedge funds are viewed as underperforming, outdated financial vehicles of the past. While there are more than 8000 funds trading at present, Experts at hedge fund tracking site Insider Monkey look at the elite of this club, around 700 funds. These money managerspreside over the lion’s share of all hedge funds’ total capital, and by monitoring their first-class investments, Insider Monkey has unsheathed a few investment strategies that have historically outstripped the S&P 500 index. Insider Monkey’s small-cap hedge fund strategy outrun the S&P 500 index by 18 percentage points a year for a decade in their back tests. So, it may be beneficial to focus on hedge fund moves.
Keeping this in mind, let’s check out the key action regarding Time Warner Cable Inc (NYSE:TWC).
How are hedge funds trading Time Warner Cable Inc (NYSE:TWC)?
At Q3’s end, a total of 84 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of -5% from the second quarter. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were upping their stakes substantially.
According to hedge fund intelligence website Insider Monkey, Paulson & Co, managed by John Paulson, holds the number one position in Time Warner Cable Inc (NYSE:TWC). Paulson & Co has a $1.0512 billion position in the stock, comprising 4.4% of its 13F portfolio. Coming in second is Chris Hohn of Childrens Investment Fund, with a $977.6 million position; 42.1% of its 13F portfolio is allocated to the stock. Remaining hedge funds with similar optimism encompass D. E. Shaw’s D E Shaw, Jonathon Jacobson’s Highfields Capital Management and Matthew Halbower’s Pentwater Capital Management.
Since Time Warner Cable Inc (NYSE:TWC) has experienced falling interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds that elected to cut their full holdings heading into Q4. Intriguingly, John Thaler’s JAT Capital Management dropped the biggest investment of all the hedgies monitored by Insider Monkey, valued at an estimated $329.7 million in stock, and Joshua Friedman and Mitchell Julis of Canyon Capital Advisors was right behind this move, as the fund dumped about $299.9 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 4 funds heading into Q4.