Triple Flag Precious Metals Corp. (TSE:TFPM) is largely controlled by hedge funds shareholders who own 66% of the company
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Key Insights
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Given the large stake in the stock by institutions, Triple Flag Precious Metals' stock price might be vulnerable to their trading decisions
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Elliott Management Corporation owns 66% of the company
If you want to know who really controls Triple Flag Precious Metals Corp. (TSE:TFPM), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 66% to be precise, is hedge funds. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Since hedge funds have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of Triple Flag Precious Metals.
See our latest analysis for Triple Flag Precious Metals
What Does The Institutional Ownership Tell Us About Triple Flag Precious Metals?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Triple Flag Precious Metals. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Triple Flag Precious Metals, (below). Of course, keep in mind that there are other factors to consider, too.
It looks like hedge funds own 66% of Triple Flag Precious Metals shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is Elliott Management Corporation, with ownership of 66%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. The second and third largest shareholders are Van Eck Associates Corporation and Whitebox Advisors LLC, with an equal amount of shares to their name at 1.8%. In addition, we found that Shaun Usmar, the CEO has 1.2% of the shares allocated to their name.