How Shaw Communications Inc (USA) (SJR) Stacks Up Against Its Peers

Judging by the fact that Shaw Communications Inc (USA) (NYSE:SJR) has weathered bearish sentiment from hedge fund managers, we can see that there lies a certain “tier” of hedgies who sold off their full holdings last quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cashed in the largest stake of all the investors tracked by Insider Monkey, worth an estimated $15.7 million in stock, and Joel Greenblatt’s Gotham Asset Management was right behind this move, as the fund said goodbye to about $5.4 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Shaw Communications Inc (USA) (NYSE:SJR). We will take a look at Tesoro Corporation (NYSE:TSO), Autoliv Inc. (NYSE:ALV), Ally Financial Inc (NYSE:ALLY), and Harley-Davidson, Inc. (NYSE:HOG). This group of stocks’ market valuations are similar to SJR’s market valuation.

As you can see these stocks had an average of 32.5 hedge funds with bullish positions and the average amount invested in these stocks was $1131 million. That figure was $115 million in SJR’s case. Ally Financial Inc (NYSE:ALLY) is the most popular stock in this table. On the other hand Autoliv Inc. (NYSE:ALV) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Shaw Communications Inc (USA) (NYSE:SJR) is even less popular than ALV. 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.