Hedge Funds Are Crazy About Vale SA (ADR) (VALE)

Now, key money managers have jumped into Vale SA (ADR) (NYSE:VALE) headfirst. Horseman Capital Management, managed by John Horseman, initiated the biggest position in Vale SA (ADR) (NYSE:VALE). Horseman Capital Management had $10.5 million invested in the company at the end of the quarter. Jacob Gottlieb’s Visium Asset Management also initiated a $9.7 million position during the quarter. The other funds with new positions in the stock are Farallon Capital, Ken Griffin’s Citadel Investment Group, and GLG Partners.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Vale SA (ADR) (NYSE:VALE) but similarly valued. We will take a look at Symantec Corporation (NASDAQ:SYMC), NVIDIA Corporation (NASDAQ:NVDA), FirstEnergy Corp. (NYSE:FE), and Workday Inc (NYSE:WDAY). This group of stocks’ market values is similar to Vale SA (ADR) (NYSE:VALE)’s market value.

As you can see, these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $697 million. That figure was $141 million in Vale SA (ADR) (NYSE:VALE)’s case. Symantec Corporation (NASDAQ:SYMC) is the most popular stock in this table. On the other hand, FirstEnergy Corp. (NYSE:FE) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks, Vale SA (ADR) (NYSE:VALE) is even less popular than FirstEnergy Corp. (NYSE:FE). 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.