TIM Participacoes SA (ADR) (TSU): Are Hedge Funds Right About This Stock?

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Due to the fact that TIM Participacoes SA (ADR) (NYSE:TSU) has witnessed declining sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedgies who sold off their entire stakes in the third quarter. At the top of the heap, Frank Brosens’s Taconic Capital dropped the largest investment of the “upper crust” of funds followed by Insider Monkey, valued at an estimated $27.3 million in stock, and Jacob Gottlieb’s Visium Asset Management was right behind this move, as the fund dropped about $12.2 million worth. These transactions are interesting, as total hedge fund interest dropped by 12 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as TIM Participacoes SA (ADR) (NYSE:TSU) but similarly valued. We will take a look at Manhattan Associates, Inc. (NASDAQ:MANH), Empire State Realty Trust Inc (NYSE:ESRT), Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR), and Howard Hughes Corp (NYSE:HHC). This group of stocks’ market values are similar to TSU’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MANH 20 224751 6
ESRT 9 148760 -6
ASR 6 56476 2
HHC 33 1295209 3

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $431 million. That figure was $273 million in TSU’s case. Howard Hughes Corp (NYSE:HHC) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR) is the least popular one with only 6 bullish hedge fund positions. TIM Participacoes SA (ADR) (NYSE:TSU) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HHC might be a better candidate to consider a long position.

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