Telecom Stock Up 25% Over the Past Year Draws $21 Million Bet From Hedge Fund
Key Points
Kerrisdale Advisers bought 506,067 shares of TDS in the fourth quarter.
The fund’s quarter-end stake in TDS increased by $20.75 million as a result of the new purchase.
The new TDS position accounts for 9.77% of the fund’s AUM, making it the fund’s largest holding at quarter end.
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Kerrisdale Advisers initiated a new position in Telephone and Data Systems (NYSE:TDS), acquiring 506,067 shares in the fourth quarter, valued at $20.75 million based on quarter-end pricing, according to a February 17, 2026, SEC filing.
What happened
According to a February 17, 2026, SEC filing, Kerrisdale Advisers initiated a new position in Telephone and Data Systems (NYSE:TDS), acquiring 506,067 shares during the fourth quarter of 2025. The quarter-end value of the TDS stake increased by $20.75 million as a result of the new purchase.
What else to know
- Top five holdings after the filing:
- NYSE:TDS: $20.75 million (9.8% of AUM)
- NASDAQ:MELI: $17.25 million (8.1% of AUM)
- NYSE:SYY: $15.57 million (7.3% of AUM)
- NYSE:V: $13.84 million (6.5% of AUM)
- NASDAQ:ACMR: $10.39 million (4.9% of AUM)
- As of February 16, 2026, TDS shares were priced at $47.59, up 25% over the past year and outperforming the S&P 500’s roughly 20% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.2 billion |
| Net Income (TTM) | ($75.5 million) |
| Dividend Yield | 0.4% |
| Price (as of market close February 16, 2026) | $47.59 |
Company snapshot
- Telephone and Data Systems offers wireless solutions, IoT connectivity, broadband, cloud TV, and telecommunications services through UScellular and TDS Telecom segments.
- The firm generates revenue primarily from wireless service subscriptions, device sales, broadband internet, and managed telecom solutions for both consumer and business markets.
- It serves individual consumers, businesses, and government clients across the United States, with a significant presence in wireless and wireline connections.
Telephone and Data Systems, Inc. is a diversified telecommunications provider with a national footprint in wireless and broadband services. The company leverages its integrated platform to address both consumer and enterprise connectivity needs, positioning itself as a key regional player in the U.S. communications sector. Strategic investments in IoT and next-generation network solutions support its competitive differentiation and long-term growth objectives.
What this transaction means for investors
Telephone and Data Systems spent much of the past year reshaping its operations. Management sold off parts of its wireless business and leaned more heavily into fiber broadband and tower infrastructure through its Array unit, moves designed to simplify the company and strengthen its balance sheet. Those changes already show early financial improvement. In the fourth quarter, TDS reported $330.7 million in operating revenue, up from $295.3 million a year earlier, while net income jumped to $37.2 million, a sharp turnaround from barely breakeven the prior year. For the full year, the company generated $1.23 billion in revenue and returned to profitability after posting losses in 2024.
Within the portfolio, the position also fits alongside a mix of global technology, payments, and commerce companies like MercadoLibre and Visa. That combination suggests a strategy focused on durable cash-generating businesses rather than pure growth bets.
For long-term investors, the story is less about telecom growth and more about execution. If fiber expansion and asset monetization continue to improve profitability, a quiet telecom operator could become a surprisingly steady compounder.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MercadoLibre, Sysco, and Visa. The Motley Fool has a disclosure policy.
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