Infosys Ltd ADR (INFY): Are Hedge Funds Right About This Stock?

Due to the fact that Infosys Ltd ADR (NYSE:INFY) has weathered declining sentiment from hedge fund managers, logic holds that there is a sect of hedge funds that decided to sell off their positions entirely by the end of the third quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cashed in the biggest investment of the 700 funds tracked by Insider Monkey, comprising an estimated $121.2 million in stock, and Ernest Chow and Jonathan Howe’s Sensato Capital Management was right behind this move, as the fund dropped about $11.3 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Infosys Ltd ADR (NYSE:INFY). We will take a look at Bank of Montreal (USA) (NYSE:BMO), FedEx Corporation (NYSE:FDX), PNC Financial Services (NYSE:PNC), and America Movil SAB de CV (ADR) (NYSE:AMX). This group of stocks’ market valuations are similar to INFY’s market valuation.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1.6 billion. That figure was $823 million in INFY’s case. PNC Financial Services (NYSE:PNC) is the most popular stock in this table. On the other hand America Movil SAB de CV (ADR) (NYSE:AMX) is the least popular one with only 11 bullish hedge fund positions. Infosys Ltd ADR (NYSE:INFY) 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 PNC might be a better candidate to consider taking a long position in.

Disclosure: None