Credit Suisse Group AG (ADR) (CS)’s Stock Trading Higher Despite Credit Rating Downgrade

As one would reasonably expect, some big names have been driving this bullishness. Masters Capital Management, managed by Mike Masters, assembled the largest position in Credit Suisse Group AG (ADR) (NYSE:CS). Masters Capital Management had $28.3 million invested in the company at the end of the first quarter. Brian Gaines’s Springhouse Capital Management also initiated a $4.8 million position during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, D. E. Shaw’s D E Shaw, and Paul Tudor Jones’s Tudor Investment Corp.

Let’s also examine hedge fund activity in other stocks similar to Credit Suisse Group AG (ADR) (NYSE:CS). We will take a look at Baxalta Inc (NYSE:BXLT), V.F. Corporation (NYSE:VFC), Equity Residential (NYSE:EQR), and Humana Inc (NYSE:HUM). This group of stocks’ market valuations resemble CS’s market valuation.

As you can see these stocks had an average of 47 hedge funds with bullish positions and the average amount invested in these stocks was $3193 million. That figure was $192 million in CS’s case. Baxalta Inc (NYSE:BXLT) is the most popular stock in this table. On the other hand Equity Residential (NYSE:EQR) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks Credit Suisse Group AG (ADR) (NYSE:CS) is even less popular than EQR. 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