Is Bitauto Hldg Ltd (ADR) (BITA) Going to Reward Investors?

As industry-wide interest jumped, key money managers have jumped into Bitauto Hldg Ltd (ADR) (NYSE:BITA) headfirst. Millennium Management, one of the 10 largest hedge funds in the world, created the largest position in Bitauto Hldg Ltd (ADR) (NYSE:BITA). Millennium Management had $2.1 million invested in the company at the end of the quarter. Charles Davidson’s Wexford Capital also made a $1.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Cliff Asness’ AQR Capital Management, and Simon Sadler’s Segantii Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Bitauto Hldg Ltd (ADR) (NYSE:BITA) but similarly valued. These stocks are National Beverage Corp. (NASDAQ:FIZZ), Party City Holdco Inc (NYSE:PRTY), Synaptics, Incorporated (NASDAQ:SYNA), and LTC Properties Inc (NYSE:LTC). All of these stocks’ market caps resemble BITA’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $100 million. That figure was $117 million in BITA’s case. Synaptics, Incorporated (NASDAQ:SYNA) is the most popular stock in this table. On the other hand LTC Properties Inc (NYSE:LTC) is the least popular one with only 5 bullish hedge fund positions. Bitauto Hldg Ltd (ADR) (NYSE:BITA) 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 recently. In this regard FIZZ might be a better candidate to consider taking a long position in.

Disclosure: None