Total System Services, Inc. (TSS): Are Hedge Funds Right About This Stock?

Because Total System Services, Inc. (NYSE:TSS) has witnessed bearish sentiment from hedge fund managers, we can see that there is a sect of funds that elected to cut their full holdings by the end of the third quarter. Intriguingly, James Parsons’ Junto Capital Management dumped the biggest stake of the “upper crust” of funds watched by Insider Monkey, comprising an estimated $36.3 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dumped about $1.3 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks similar to Total System Services, Inc. (NYSE:TSS). These stocks are CNH Industrial NV (NYSE:CNHI), Kansas City Southern (NYSE:KSU), Restaurant Brands International Inc (NYSE:QSR), and LKQ Corporation (NASDAQ:LKQ). All of these stocks’ market caps resemble TSS’s market cap.

As you can see these stocks had an average of 28.5 hedge funds with bullish positions and the average amount invested in these stocks was $1.28 billion. That figure was $430 million in TSS’s case. Kansas City Southern (NYSE:KSU) is the most popular stock in this table. On the other hand CNH Industrial NV (NYSE:CNHI) is the least popular one with only 15 bullish hedge fund positions. Total System Services, Inc. (NYSE:TSS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on and have more money invested in. In this regard KSU might be a better candidate to consider a long position.

Disclosure: None