PT Telekomunikasi Indonesia (ADR) (NYSE:TLK) was in 11 hedge funds’ portfolio at the end of the first quarter of 2013. TLK investors should pay attention to a decrease in enthusiasm from smart money of late. There were 13 hedge funds in our database with TLK positions at the end of the previous quarter.
In today’s marketplace, there are a multitude of gauges shareholders can use to watch the equity markets. A pair of the most useful are hedge fund and insider trading sentiment. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite fund managers can outperform the S&P 500 by a healthy margin (see just how much).
Just as important, positive insider trading sentiment is another way to break down the marketplace. Obviously, there are a number of incentives for an upper level exec to downsize shares of his or her company, but just one, very obvious reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this method if “monkeys” understand where to look (learn more here).
With these “truths” under our belt, it’s important to take a gander at the key action encompassing PT Telekomunikasi Indonesia (ADR) (NYSE:TLK).
Hedge fund activity in PT Telekomunikasi Indonesia (ADR) (NYSE:TLK)
In preparation for this quarter, a total of 11 of the hedge funds we track were long in this stock, a change of -15% from the previous quarter. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were increasing their holdings meaningfully.
Of the funds we track, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital had the biggest position in PT Telekomunikasi Indonesia (ADR) (NYSE:TLK), worth close to $48.8 million, accounting for 0.4% of its total 13F portfolio. The second largest stake is held by Cliff Asness of AQR Capital Management, with a $18.8 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Jim Simons’s Renaissance Technologies, Thomas Lenox Kempner’s Davidson Kempner and Robert B. Gillam’s McKinley Capital Management.
Because PT Telekomunikasi Indonesia (ADR) (NYSE:TLK) has witnessed falling interest from the smart money, logic holds that there lies a certain “tier” of funds who were dropping their entire stakes last quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group dumped the largest position of all the hedgies we watch, worth an estimated $6.5 million in stock., and Israel Englander of Millennium Management was right behind this move, as the fund dropped about $0.8 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 2 funds last quarter.
Insider trading activity in PT Telekomunikasi Indonesia (ADR) (NYSE:TLK)
Insider purchases made by high-level executives is most useful when the company in focus has seen transactions within the past 180 days. Over the last half-year time frame, PT Telekomunikasi Indonesia (ADR) (NYSE:TLK) 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 PT Telekomunikasi Indonesia (ADR) (NYSE:TLK). These stocks are Nippon Telegraph & Telephone Corp (ADR) (NYSE:NTT), China Telecom Corporation Limited (ADR) (NYSE:CHA), Philippine Long Distance Telephone (ADR) (NYSE:PHI), BT Group plc (ADR) (NYSE:BT), and France Telecom SA (ADR) (NYSE:FTE). This group of stocks belong to the telecom services – foreign industry and their market caps are closest to TLK’s market cap.