Published on 7 Feb 2022 on Insider Monkey via Yahoo Finance

Were Hedge Funds Right About Tyler Technologies, Inc. (TYL)?

How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of capital and have to conduct due diligence while choosing their next pick. They don't always get it right, but, on average, their stock picks historically generated strong returns after adjusting for known risk factors. With this in mind, let’s take a look at the recent hedge fund activity surrounding Tyler Technologies, Inc. (NYSE:TYL) and determine whether hedge funds had an edge regarding this stock.

Tyler Technologies, Inc. (NYSE:TYL) investors should pay attention to a decrease in enthusiasm from smart money in recent months. Tyler Technologies, Inc. (NYSE:TYL) was in 30 hedge funds' portfolios at the end of the third quarter of 2021. The all time high for this statistic is 36. Our calculations also showed that TYL isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings).

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Keeping this in mind we're going to analyze the recent hedge fund action encompassing Tyler Technologies, Inc. (NYSE:TYL).