Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) has seen an increase in support from the world’s most elite money managers of late. Our calculations also showed that TLK isn’t among the 30 most popular stocks among hedge funds.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the market by 32 percentage points since May 2014 through March 12, 2019 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
Let’s take a peek at the new hedge fund action encompassing Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK).
What have hedge funds been doing with Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK)?
At the end of the fourth quarter, a total of 6 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from the previous quarter. The graph below displays the number of hedge funds with bullish position in TLK over the last 14 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) was held by Renaissance Technologies, which reported holding $108.1 million worth of stock at the end of September. It was followed by D E Shaw with a $1.1 million position. Other investors bullish on the company included Citadel Investment Group, Weld Capital Management, and Fisher Asset Management.
With a general bullishness amongst the heavyweights, key money managers have jumped into Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) headfirst. D E Shaw, managed by D. E. Shaw, established the biggest position in PT Telekomunikasi Indonesia (NYSE:TLK). D E Shaw had $1.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $1 million position during the quarter. The only other fund with a brand new TLK position is Minhua Zhang’s Weld Capital Management.
Let’s now review hedge fund activity in other stocks similar to Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK). These stocks are TE Connectivity Ltd. (NYSE:TEL), Xcel Energy Inc (NASDAQ:XEL), Canadian Pacific Railway Limited (NYSE:CP), and Sirius XM Holdings Inc (NASDAQ:SIRI). This group of stocks’ market caps resemble TLK’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TEL | 25 | 1264806 | -5 |
| XEL | 21 | 559185 | 0 |
| CP | 40 | 2102902 | 10 |
| SIRI | 21 | 1145420 | -3 |
| Average | 26.75 | 1268078 | 0.5 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 26.75 hedge funds with bullish positions and the average amount invested in these stocks was $1268 million. That figure was $111 million in TLK’s case. Canadian Pacific Railway Limited (NYSE:CP) is the most popular stock in this table. On the other hand Xcel Energy Inc (NASDAQ:XEL) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) is even less popular than XEL. Our calculations showed that top 15 most popular stocks among hedge funds returned 19.7% through March 15th and outperformed the S&P 500 ETF (SPY) by 6.6 percentage points. Unfortunately TLK wasn’t in this group. Hedge funds that bet on TLK were disappointed as the stock lost 0.2% and underperformed the market. If you are interested in investing in large cap stocks, you should check out the top 15 hedge fund stocks as 13 of these outperformed the market.
Disclosure: None. This article was originally published at Insider Monkey.
