Is Mizuho Financial Group Inc. (ADR) (MFG) A Good Stock To Invest In?

Seeing as Mizuho Financial Group Inc. (ADR) (NYSE:MFG) has witnessed declining sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of fund managers that elected to cut their entire stakes last quarter. Interestingly, Kevin D. Eng’s Columbus Hill Capital Management dumped the largest position of the 700 funds tracked by Insider Monkey, comprising an estimated $10.7 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell of Arrowstreet Capital was right behind this move, as the fund said goodbye to about $0.1 million worth of shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 2 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Mizuho Financial Group Inc. (ADR) (NYSE:MFG) but similarly valued. We will take a look at salesforce.com, inc. (NYSE:CRM), PNC Financial Services (NYSE:PNC), Canadian National Railway (USA) (NYSE:CNI), and General Dynamics Corporation (NYSE:GD). All of these stocks’ market caps resemble MFG’s market cap.

As you can see these stocks had an average of 37.25 hedge funds with bullish positions and the average amount invested in these stocks was $2.58 billion. That figure was just $13 million in MFG’s case. salesforce.com, inc. (NYSE:CRM) is the most popular stock in this table with 56 funds holding shares. On the other hand Canadian National Railway (USA) (NYSE:CNI) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Mizuho Financial Group Inc. (ADR) (NYSE:MFG) is even less popular than CNI. Therefore, considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. However, we consider that it is better to focus on stocks that hedge funds are collectively the most bullish on and the table offers some better alternatives to pick from.