We started seeing tectonic shifts in the market during the third quarter. Small-cap stocks underperformed the large-cap stocks by more than 10 percentage points between the end of June 2015 and the end of June 2016. A mean reversion in trends bumped small-cap stocks’ return to almost 9% in Q3, outperforming their large-cap peers by 5 percentage points. The momentum in small-cap space hasn’t subsided during this quarter either. Small-cap stocks beat large-cap stocks by another 5 percentage points during the first 7 weeks of this quarter. Hedge funds and institutional investors tracked by Insider Monkey usually invest a disproportionate amount of their portfolios in smaller cap stocks. We have been receiving indications that hedge funds were boosting their overall exposure and this is one of the factors behind the recent movements in major indices. In this article, we will take a closer look at hedge fund sentiment towards Total System Services, Inc. (NYSE:TSS).
Hedge fund interest in Total System Services, Inc. (NYSE:TSS) shares was flat during the third quarter. This is usually a negative indicator. At the end of this article we will also compare TSS to other stocks including CNH Industrial NV (NYSE:CNHI), Kansas City Southern (NYSE:KSU), and Restaurant Brands International Inc (NYSE:QSR) to get a better sense of its popularity.
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Now, we’re going to go over the key action encompassing Total System Services, Inc. (NYSE:TSS).
How are hedge funds trading Total System Services, Inc. (NYSE:TSS)?
At the end of the third quarter, a total of 32 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from one quarter earlier. With hedge funds’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Cliff Asness’ AQR Capital Management has the biggest position in Total System Services, Inc. (NYSE:TSS), worth close to $91.4 million. The second largest stake is held by Renaissance Technologies, led by Jim Simons, holding a $43.3 million position. Remaining members of the smart money with similar optimism consist of Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, John Overdeck and David Siegel’s Two Sigma Advisors and Ken Fisher’s Fisher Asset Management.