In the 21st century investor’s toolkit, there are a multitude of methods investors can use to watch publicly traded companies. Two of the most innovative are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outpace their index-focused peers by a significant margin (see just how much).
Just as useful, optimistic insider trading activity is another way to analyze the investments you’re interested in. Obviously, there are plenty of stimuli for a corporate insider to cut shares of his or her company, but only one, very simple reason why they would behave bullishly. Various academic studies have demonstrated the useful potential of this method if investors understand what to do (learn more here).
What’s more, we’re going to analyze the latest info about TeleCommunication Systems, Inc. (NASDAQ:TSYS).
What have hedge funds been doing with TeleCommunication Systems, Inc. (NASDAQ:TSYS)?
At the end of the second quarter, a total of 8 of the hedge funds we track were bullish in this stock, a change of -20% from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of notable hedge fund managers who were upping their stakes significantly.
When using filings from the hedgies we track, Cannell Capital, managed by J. Carlo Cannell, holds the largest position in TeleCommunication Systems, Inc. (NASDAQ:TSYS). Cannell Capital has a $6.6 million position in the stock, comprising 3.9% of its 13F portfolio. The second largest stake is held by Renaissance Technologies, managed by Jim Simons, which held a $2.2 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other peers with similar optimism include D. E. Shaw’s D E Shaw, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors and Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners.
Since TeleCommunication Systems, Inc. (NASDAQ:TSYS) has faced dropping sentiment from upper-tier hedge fund managers, it’s safe to say that there were a few fund managers that decided to sell off their positions entirely at the end of the second quarter. Intriguingly, Israel Englander’s Millennium Management cut the largest stake of the 450+ funds we watch, comprising about $0 million in stock. Ben Levine, Andrew Manuel and Stefan Renold’s fund, LMR Partners, also cut its stock, about $0 million worth. These transactions are important to note, as total hedge fund interest dropped by 2 funds at the end of the second quarter.
How have insiders been trading TeleCommunication Systems, Inc. (NASDAQ:TSYS)?
Insider buying made by high-level executives is particularly usable when the company in focus has seen transactions within the past six months. Over the latest 180-day time frame, TeleCommunication Systems, Inc. (NASDAQ:TSYS) has experienced zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to TeleCommunication Systems, Inc. (NASDAQ:TSYS). These stocks are Ceragon Networks Ltd. (NASDAQ:CRNT), AudioCodes Ltd. (NASDAQ:AUDC), Westell Technologies Inc. (NASDAQ:WSTL), Ikanos Communications, Inc. (NASDAQ:IKAN), and Parametric Sound Corp (NASDAQ:PAMT). This group of stocks are the members of the communication equipment industry and their market caps are similar to TSYS’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Ceragon Networks Ltd. (NASDAQ:CRNT) | 5 | 0 | 0 |
| AudioCodes Ltd. (NASDAQ:AUDC) | 3 | 0 | 0 |
| Westell Technologies Inc. (NASDAQ:WSTL) | 4 | 0 | 0 |
| Ikanos Communications, Inc. (NASDAQ:IKAN) | 0 | 0 | |
| Parametric Sound Corp (NASDAQ:PAMT) | 4 | 0 | 0 |
Using the returns explained by our studies, regular investors must always keep one eye on hedge fund and insider trading sentiment, and TeleCommunication Systems, Inc. (NASDAQ:TSYS) applies perfectly to this mantra.
