Do Hedge Funds Love UBS AG (USA) (UBS)?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. At the top of the heap, Alec Litowitz and Ross Laser’s Magnetar Capital dropped the largest stake of the 700 funds monitored by Insider Monkey, totaling about $0.6 million in stock, and D. E. Shaw’s D E Shaw was right behind this move, as the fund dumped about $0.3 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as UBS AG (USA) (NYSE:UBS) but similarly valued. These stocks are Canadian National Railway (USA) (NYSE:CNI), Banco Bradesco SA (ADR) (NYSE:BBD), Telefonica S.A. (ADR) (NYSE:TEF), and Baidu.com, Inc. (ADR) (NASDAQ:BIDU). This group of stocks’ market caps are closest to UBS’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $1.48 billion. That figure was $660 million in UBS’s case. Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is the most popular stock in this table. On the other hand Telefonica S.A. (ADR) (NYSE:TEF) is the least popular one with only 5 bullish hedge fund positions. UBS AG (USA) (NYSE:UBS) 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 BIDU might be a better candidate to consider taking a long position in.

Disclosure: None