In this article we will take a look at whether hedge funds think Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) has experienced a decrease in hedge fund interest of late. Our calculations also showed that TKC isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
In the 21st century investor’s toolkit there are a lot of methods shareholders can use to appraise stocks. A pair of the less known methods are hedge fund and insider trading signals. We have shown that, historically, those who follow the top picks of the top money managers can outperform their index-focused peers by a superb amount (see the details here).
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, legendary investor Bill Miller told investors to sell 7 extremely popular recession stocks last month. So, we went through his list and recommended another stock with 100% upside potential instead. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. With all of this in mind we’re going to analyze the key hedge fund action surrounding Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC).
What does smart money think about Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC)?
At Q1’s end, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -57% from the previous quarter. By comparison, 7 hedge funds held shares or bullish call options in TKC a year ago. With hedge funds’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably (or already accumulated large positions).
The largest stake in Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) was held by Oldfield Partners, which reported holding $32.7 million worth of stock at the end of September. It was followed by Arrowstreet Capital with a $7 million position. The only other hedge fund that is bullish on the company was Two Sigma Advisors.
Seeing as Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) has experienced a decline in interest from the aggregate hedge fund industry, logic holds that there exists a select few money managers who sold off their positions entirely heading into Q4. Intriguingly, Ken Griffin’s Citadel Investment Group sold off the biggest investment of the “upper crust” of funds monitored by Insider Monkey, totaling close to $0.2 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also said goodbye to its stock, about $0.1 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 4 funds heading into Q4.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) but similarly valued. We will take a look at Quidel Corporation (NASDAQ:QDEL), Axalta Coating Systems Ltd (NYSE:AXTA), Eastgroup Properties Inc (NYSE:EGP), and Solaredge Technologies Inc (NASDAQ:SEDG). This group of stocks’ market caps resemble TKC’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 27.75 hedge funds with bullish positions and the average amount invested in these stocks was $383 million. That figure was $40 million in TKC’s case. Axalta Coating Systems Ltd (NYSE:AXTA) is the most popular stock in this table. On the other hand Eastgroup Properties Inc (NYSE:EGP) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Turkcell Iletisim Hizmetleri A.S. (NYSE:TKC) is even less popular than EGP. Hedge funds dodged a bullet by taking a bearish stance towards TKC. Our calculations showed that the top 10 most popular hedge fund stocks returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 7.9% in 2020 through May 22nd but managed to beat the market by 15.6 percentage points. Unfortunately TKC wasn’t nearly as popular as these 10 stocks (hedge fund sentiment was very bearish); TKC investors were disappointed as the stock returned 8.8% during the second quarter (through May 22nd) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market so far in 2020.
Disclosure: None. This article was originally published at Insider Monkey.