China Mobile Ltd. (ADR) (NYSE:CHL): Are Hedge Funds Right About This Stock?

Is China Mobile Ltd. (ADR) (NYSE:CHL) a buy right now? The smart money is becoming less hopeful. The number of long hedge fund bets decreased by 1 lately.

7 Reasons Why Investors Should be Afraid of China

In the eyes of most shareholders, hedge funds are assumed to be unimportant, old investment vehicles of yesteryear. While there are over 8000 funds in operation today, we hone in on the leaders of this club, close to 450 funds. It is widely believed that this group oversees most of the hedge fund industry’s total capital, and by watching their top picks, we have determined a number of investment strategies that have historically outstripped Mr. Market. Our small-cap hedge fund strategy outperformed the S&P 500 index by 18 percentage points annually for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 25 percentage points in 6.5 month (explore the details and some picks here).

Equally as integral, bullish insider trading activity is another way to break down the marketplace. As the old adage goes: there are plenty of incentives for a corporate insider to sell shares of his or her company, but just one, very simple reason why they would behave bullishly. Many empirical studies have demonstrated the market-beating potential of this tactic if “monkeys” know where to look (learn more here).

With all of this in mind, it’s important to take a gander at the key action surrounding China Mobile Ltd. (ADR) (NYSE:CHL).

How are hedge funds trading China Mobile Ltd. (ADR) (NYSE:CHL)?

Heading into 2013, a total of 14 of the hedge funds we track held long positions in this stock, a change of -7% from the third quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of key hedge fund managers who were increasing their holdings meaningfully.

Of the funds we track, Fisher Asset Management, managed by Ken Fisher, holds the biggest position in China Mobile Ltd. (ADR) (NYSE:CHL). Fisher Asset Management has a $225 million position in the stock, comprising 0.6% of its 13F portfolio. Coming in second is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which held a $53 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Ranjan Tandon’s Libra Advisors, Cliff Asness’s AQR Capital Management and Ken Griffin’s Citadel Investment Group.

Due to the fact that China Mobile Ltd. (ADR) (NYSE:CHL) has witnessed declining sentiment from hedge fund managers, it’s safe to say that there exists a select few funds that elected to cut their full holdings heading into 2013. At the top of the heap, John Kleinheinz’s Kleinheinz Capital Partners sold off the largest stake of all the hedgies we watch, comprising close to $17 million in stock., and Sander Gerber of Hudson Bay Capital Management was right behind this move, as the fund dropped about $0 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 funds heading into 2013.

Insider trading activity in China Mobile Ltd. (ADR) (NYSE:CHL)

Insider purchases made by high-level executives is most useful when the primary stock in question has seen transactions within the past 180 days. Over the last 180-day time period, China Mobile Ltd. (ADR) (NYSE:CHL) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

With the results demonstrated by the aforementioned studies, everyday investors must always watch hedge fund and insider trading activity, and China Mobile Ltd. (ADR) (NYSE:CHL) applies perfectly to this mantra.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!