Do Hedge Funds Love 58.com Inc (ADR) (WUBA)?

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As aggregate interest increased, key hedge funds have jumped into 58.com Inc (ADR) (NYSE:WUBA) headfirst. OZ Management also made a $27.2 million investment in the stock during the quarter. The following funds were also among the new 58.com Inc (ADR) (NYSE:WUBA) investors: Alex Sacerdote’s Whale Rock Capital Management, Karthik Sarma’s SRS Investment Management, and Fang Zheng’s Keywise Capital Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as 58.com Inc (ADR) (NYSE:WUBA) but similarly valued. These stocks are Spectrum Brands Holdings, Inc. (NYSE:SPB), Range Resources Corp. (NYSE:RRC), Service Corporation International (NYSE:SCI), and Westar Energy Inc (NYSE:WR). This group of stocks’ market caps is closer to 58.com Inc (ADR) (NYSE:WUBA)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SPB 25 546965 -4
RRC 31 744711 -11
SCI 37 607274 12
WR 10 122099 1

As you can see, these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $505 million. That figure was $502 million in 58.com Inc (ADR) (NYSE:WUBA)’s case. Service Corporation International (NYSE:SCI) is the most popular stock in this table. On the other hand, Westar Energy Inc (NYSE:WR) is the least popular one with only 10 bullish hedge fund positions. 58.com Inc (ADR) (NYSE:WUBA) 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. In this regard, Service Corporation International (NYSE:SCI) might be a better candidate to consider a long position.

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