ArcelorMittal (ADR) (MT) Surges On Reports That EU Anti-Dumping Probe May Widen

Key money managers jumped into ArcelorMittal (ADR) (NYSE:MT) headfirst during Q1. Tide Point Capital, managed by Christopher A. Winham, assembled the largest position in ArcelorMittal (ADR) (NYSE:MT). Tide Point Capital had $18.3 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $14.5 million investment in the stock during the quarter. The other funds with new positions in the stock are Dmitry Balyasny’s Balyasny Asset Management, Larry Foley and Paul Farrell’s Bronson Point Partners, and Michael Platt and William Reeves’ BlueCrest Capital Mgmt.

Let’s now review hedge fund activity in other stocks similar to ArcelorMittal (ADR) (NYSE:MT). These stocks are D.R. Horton, Inc. (NYSE:DHI), Coach, Inc. (NYSE:COH), Hanesbrands Inc. (NYSE:HBI), and Discovery Communications Inc. (NASDAQ:DISCK). This group of stocks’ market caps are closest to MT’s market cap.

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $781 million. That figure was $235 million in MT’s case. D.R. Horton, Inc. (NYSE:DHI) is the most popular stock in this table. On the other hand Discovery Communications Inc. (NASDAQ:DISCK) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks ArcelorMittal (ADR) (NYSE:MT) is even less popular than DISCK. 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. This isn’t necessarily bad news. 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. In either case more research is warranted.

Disclosure: None