Twitter Inc (NYSE:TWTR) was in 58 hedge funds’ portfolio at the end of the third quarter of 2014. TWTR has seen a huge increase in hedge fund interest lately. According to Insider Monkey there were 38 hedge funds with TWTR holdings at the end of June. Beeneet Kothari, Leon Shaulov, and Nick Niell are some of the hedge funds initiating brand new positions in Twitter Inc (NYSE:TWTR) during the third quarter. Is an increase in hedge fund holdings a good sign?
If you’d ask some investors, hedge funds are unimportant, outdated investment tools. While there are more than 8000 funds trading at present, hedge fund experts at Insider Monkey look at the elite of this group, approximately 700 funds. These investment gurus command most of all hedge funds’ total asset base, and by tailing their first-class investments, Insider Monkey has discovered several investment strategies that have historically beaten the broader indices. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points annually for a decade in their back tests. Their research has also shown that the stocks that see significant jumps in hedge fund investors tend to outperform the market by double digits. Though these are average returns and don’t guarantee a strong performance in Twitter Inc (NYSE:TWTR) shares going forward.
How are hedge funds trading Twitter Inc (NYSE:TWTR)?
At Q3’s end, a total of 58 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of 53% from one quarter earlier. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were upping their stakes substantially.
John Thaler’s JAT Capital Management had the most valuable position in Twitter Inc (NYSE:TWTR), worth close to $513.8 million, comprising 8.4% of its total 13F portfolio. Sitting at the No. 2 spot is Andor Capital Management, managed by Daniel Benton, which held a $296.6 million position; the fund has 13.8% of its 13F portfolio invested in the stock. Other hedge funds with similar optimism contain Steve Cohen’s Point72 Asset Management, Bain Capital’s Brookside Capital and Columbus Circle Investors.
Now, key money managers have jumped into Twitter Inc (NYSE:TWTR) headfirst. Columbus Circle Investors established the most valuable position in Twitter Inc (NYSE:TWTR). Columbus Circle Investors had 88.8 million invested in the company at the end of the quarter. Leon Shaulov’s Maplelane Capital also initiated a $60.2 million position during the quarter. The following funds were also among the new TWTR investors: Louis Bacon’s Moore Global Investments, Nick Niell’s Arrowgrass Capital Partners, and Beeneet Kothari’s Tekne Capital Management.