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Here is What Hedge Funds Think About TIM Participacoes SA (ADR) (TSU)

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TIM Participacoes SA (ADR) (NYSE:TSU) was in 9 hedge funds’ portfolio at the end of the fourth quarter of 2012. TSU investors should pay attention to a decrease in hedge fund interest lately. There were 11 hedge funds in our database with TSU positions at the end of the previous quarter.

According to most investors, hedge funds are perceived as worthless, outdated financial tools of the past. While there are more than 8000 funds with their doors open at present, we at Insider Monkey choose to focus on the aristocrats of this group, about 450 funds. It is estimated that this group oversees the majority of all hedge funds’ total capital, and by watching their highest performing investments, we have spotted a few investment strategies that have historically beaten the S&P 500 index. Our small-cap hedge fund strategy outpaced the S&P 500 index by 18 percentage points a year for a decade in our back tests, and since we’ve started sharing our picks with our subscribers at the end of August 2012, we have trumped the S&P 500 index by 24 percentage points in 7 months (check out a sample of our picks).

TIM Participacoes SA (ADR) (NYSE:TSU)

Just as key, optimistic insider trading sentiment is a second way to break down the world of equities. Just as you’d expect, there are a number of motivations for an upper level exec to cut shares of his or her company, but only one, very obvious reason why they would initiate a purchase. Several empirical studies have demonstrated the market-beating potential of this strategy if shareholders understand where to look (learn more here).

With these “truths” under our belt, we’re going to take a peek at the key action regarding TIM Participacoes SA (ADR) (NYSE:TSU).

Hedge fund activity in TIM Participacoes SA (ADR) (NYSE:TSU)

At the end of the fourth quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of -18% from one quarter earlier. With hedgies’ sentiment swirling, there exists a select group of key hedge fund managers who were upping their stakes significantly.

When looking at the hedgies we track, John Thaler’s JAT Capital Management had the most valuable position in TIM Participacoes SA (ADR) (NYSE:TSU), worth close to $51.5 million, comprising 3.1% of its total 13F portfolio. On JAT Capital Management’s heels is Jim Simons of Renaissance Technologies, with a $22 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other hedge funds that are bullish include Ken Griffin’s Citadel Investment Group, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.

Due to the fact that TIM Participacoes SA (ADR) (NYSE:TSU) has witnessed declining sentiment from hedge fund managers, logic holds that there exists a select few hedgies who were dropping their positions entirely in Q4. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the largest stake of the 450+ funds we track, totaling an estimated $9.8 million in stock., and Mark Rachesky of MHR Fund Management was right behind this move, as the fund dumped about $1.6 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 2 funds in Q4.

How are insiders trading TIM Participacoes SA (ADR) (NYSE:TSU)?

Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the last 180-day time period, TIM Participacoes SA (ADR) (NYSE:TSU) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).

Let’s also take a look at hedge fund and insider activity in other stocks similar to TIM Participacoes SA (ADR) (NYSE:TSU). These stocks are Mobile TeleSystems OJSC (ADR) (NYSE:MBT), Sprint Nextel Corporation (NYSE:S), VimpelCom Ltd (ADR) (NYSE:VIP), Turkcell Iletisim Hizmetleri A.S. (ADR) (NYSE:TKC), and SK Telecom Co., Ltd. (ADR) (NYSE:SKM). This group of stocks are the members of the wireless communications industry and their market caps match TSU’s market cap.

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