Do Hedge Funds Love Credit Suisse Group AG (ADR) (CS)?

Now, key hedge funds were breaking ground themselves. PEAK6 Capital Management also established the largest position in Credit Suisse Group AG (ADR) (NYSE:CS). PEAK6 Capital Management had $2.7 million worth of the company’s shares at the end of the quarter.Ellington also initiated a $1.8 million position during the quarter. The only other fund with a brand new CS position is Israel Englander’s Millennium Management.

Let’s also examine hedge fund activity in other stocks similar to Credit Suisse Group AG (ADR) (NYSE:CS). These stocks are LyondellBasell Industries NV (NYSE:LYB), Suncor Energy Inc. (USA) (NYSE:SU), Cognizant Technology Solutions Corp (NASDAQ:CTSH), and Aetna Inc. (NYSE:AET). This group of stocks’ market valuations are similar to CS’s market valuation.

As you can see these stocks had an average of 51 hedge funds with bullish positions and the average amount invested in these stocks was $2.73 billion. That figure was just $272 million in CS’s case. Aetna Inc. (NYSE:AET) is the most popular stock in this table. On the other hand Suncor Energy Inc. (USA) (NYSE:SU) is the least popular one with only 28 bullish hedge fund positions. Compared to these stocks Credit Suisse Group AG (ADR) (NYSE:CS) is even less popular than SU. 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.