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Twitter Inc (TWTR): Oaktree Capital and Other Hedge Funds Bet Big On Company — Should You?

Twitter Inc (TWTR)

Howard Marks’ Oaktree Capital Management, Jim Simons’ Renaissance Technologies, Israel Englander’s Millennium Management, and David Shaw’s D. E. Shaw & Co. are betting big on social media company Twitter Inc  .

According to latest 13F filings, Oaktree Capital, Millennium Management and D. E. Shaw & Co. upped their stakes in the company, while Renaissance Technologies opened a new position in the social media company during the last quarter.

Twitter Inc (TWTR)

Twitter Problems

Shares of Twitter Inc   are in green today. The stock has just over 40% during the past six months. The company has been facing a user growth issue and an advertiser problem. The stock has had a forgetful 2016. According to Tomi Kilgore of MarketWatch, the company’s stock is a ‘Divergence’ buy.  The “bullish divergence” between price and a host of technical indicators suggest that shares are ripe for a bounce back.

Last week, Twitter Inc confirmed the reports that its two key executives are leaving the company. Jana Messerschmidt, the head of business development, and Nathan Hubbard, head of media and commerce, are planning to leave the company. In addition, the company disbanded its commerce team and stopped work on its “Buy” button project.

Jack Dorsey was named CEO of the social media company nearly a year ago. He was expected to improve the company’s financials, stock price and stagnant user growth. But it seems that he has been unable to achieve any of these goals.

Hedge Funds’ Moves

In its most recent 13F filing, Oaktree Capital disclosed increasing its position in the company by around 2.83 million shares during the January-March period. The fund held 10.83 million shares, worth $9.55 million, at the end of the first quarter.

Millennium Management also sees value in the stock, as the investor added 922,462 more shares to its holding of Twitter during the last quarter. The fund was holding 1.42 million shares, with a reported value of about $23.48 million, as of March 31.

D.E. Shaw & Co. was also bullish on the company during the first quarter. The latest 13F filing shows that the investor boosted its position in Twitter by 5.36 million shares to 6.0 million shares, worth about $99.31 million.

In Twitter, Renaissance Technologies opened a position during the first quarter. The fund, in its filing, revealed holding 788,900 shares, worth about $13.06 million.

Shares of Twitter Inc   were trading up 1.85% in today’s trading session.

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