Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Telekomunikasi Indones (Prsr)Tbk PT-ADR (NYSE:TLK).
Telekomunikasi Indones (Prsr)Tbk PT-ADR (NYSE:TLK) investors should pay attention to an increase in support from the world’s most successful money managers recently. TLK was in 10 hedge funds’ portfolios at the end of the third quarter of 2016. There were 8 hedge funds in our database with TLK positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Applied Materials, Inc. (NASDAQ:AMAT), Air Products & Chemicals, Inc. (NYSE:APD), and Estee Lauder Companies Inc (NYSE:EL) to gather more data points.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
What does the smart money think about Telekomunikasi Indones (Prsr)Tbk PT-ADR (NYSE:TLK)?
At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, up by 25% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in TLK over the last 5 quarters. With the smart money’s capital changing hands, there exists a select group of key hedge fund managers who were upping their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital has the number one position in Telekomunikasi Indones (Prsr)Tbk PT-ADR (NYSE:TLK), worth close to $66.8 million. On Arrowstreet Capital’s heels is Renaissance Technologies, one of the largest hedge funds in the world, holding a $42.5 million position. Remaining professional money managers that hold long positions include Ernest Chow and Jonathan Howe’s Sensato Capital Management, David Kowitz and Sheldon Kasowitz’s Indus Capital and Cliff Asness’ AQR Capital Management. We should note that two of these hedge funds (Sensato Capital Management and Indus Capital) 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.