Do Hedge Funds Love Melco Crown Entertainment Ltd (ADR) (MPEL)?

Intriguingly, Daniel S. Och’s fund, OZ Management dumped its call options, about $9.8 million worth. These moves are important to note, as aggregate hedge fund interest was cut by 1 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) but similarly valued. We will take a look at Alleghany Corporation (NYSE:Y), Global Payments Inc (NYSE:GPN), Sabre Corp (NASDAQ:SABR), and News Corp (NASDAQ:NWS). This group of stocks’ market valuations are closest to MPEL’s market valuation.

As you can see these stocks had an average of 26.5 hedge funds with bullish positions and the average amount invested in these stocks was $667 million. That figure was $320 million in MPEL’s case. Sabre Corp (NASDAQ:SABR) is the most popular stock in this table. On the other hand News Corp (NASDAQ:NWS) is the least popular one with only 15 bullish hedge fund positions. Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SABR might be a better candidate to consider a long position.