Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the activity of those successful funds in these small-cap stocks. In the following paragraphs, we analyze TIM Participacoes SA (ADR) (NYSE:TSU) from the perspective of those successful funds.
Is TIM Participacoes SA (ADR) (NYSE:TSU) a healthy stock for your portfolio? Investors who are in the know are definitely getting less bullish. The number of long hedge fund investments retreated by 3 in recent months. TSU was in 13 hedge funds’ portfolios at the end of September. There were 16 hedge funds in our database with TSU positions at the end of the previous quarter. At the end of this article we will also compare TSU to other stocks including Liberty Property Trust (NYSE:LPT), Pinnacle Foods Inc (NYSE:PF), and The Ultimate Software Group, Inc. (NASDAQ:ULTI) to get a better sense of its popularity.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs. We launched this strategy 2.5 years ago and it returned more than 39% since then, vs. 22% gain registered by the S&P 500 ETFs.
What does the smart money think about TIM Participacoes SA (ADR) (NYSE:TSU)?
Heading into the fourth quarter of 2016, a total of 13 of the hedge funds tracked by Insider Monkey were bullish on this stock, a decline of 19% from one quarter earlier. On the other hand, there were a total of 14 hedge funds with a bullish position in TSU at the beginning of this year. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Elliott Management, led by Paul Singer, holds the biggest position in TIM Participacoes SA (ADR) (NYSE:TSU). Elliott Management has a $158.4 million position in the stock, comprising 1.3% of its 13F portfolio. Coming in second is Paulson & Co, led by John Paulson, which holds a $70 million position. Other members of the smart money that are bullish contain Brett Barakett’s Tremblant Capital, Ken Griffin’s Citadel Investment Group and Hari Hariharan’s NWI Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.