Hedge Funds Aren’t Crazy About Chunghwa Telecom Co., Ltd (ADR) (CHT) Anymore

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Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. At the top of the heap, Michael Platt and William Reeves’ BlueCrest Capital Mgmt. sold off the biggest position of all the investors monitored by Insider Monkey, totaling about $4.3 million in stock, and Ernest Chow and Jonathan Howe’s Sensato Capital Management was right behind this move, as the fund sold off about $2.6 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT). We will take a look at State Street Corporation (NYSE:STT), Tata Motors Limited (ADR) (NYSE:TTM), Kellogg Company (NYSE:K), and Deere & Company (NYSE:DE). This group of stocks’ market values resemble CHT’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
STT 31 633743 -2
TTM 22 844281 10
K 39 1306871 12
DE 27 3324122 -6

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $1.53 billion. That figure was $119 million in CHT’s case. Kellogg Company (NYSE:K) is the most popular stock in this table. On the other hand Tata Motors Limited (ADR) (NYSE:TTM) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT) is even less popular than TTM. 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

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