Hedge Funds Remain Unimpressed by POSCO (ADR) (PKX)

Judging by the fact that POSCO (ADR) (NYSE:PKX) has experienced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there were a few hedgies who were dropping their full holdings last quarter. Interestingly, Jim Simons’ Renaissance Technologies cashed in the biggest stake of all the hedgies monitored by Insider Monkey, comprising about $6.3 million in stock. David Costen Haley’s fund, HBK Investments, also said goodbye to its stock, about $2.1 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as POSCO (ADR) (NYSE:PKX) but similarly valued. These stocks are Noble Energy, Inc. (NYSE:NBL), Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), Equifax Inc. (NYSE:EFX), and Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA). This group of stocks’ market values are similar to PKX’s market value.

As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $1.59 billion. That figure was $101 million in PKX’s case. Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) is the most popular stock in this table. On the other hand Noble Energy, Inc. (NYSE:NBL) is the least popular one with only 33 bullish hedge fund positions. Compared to these stocks POSCO (ADR) (NYSE:PKX) is even less popular than NBL. 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