Is BT Group plc (ADR) (BT) a Good Stock to Buy?

Seeing as BT Group plc (ADR) (NYSE:BT) has gone through bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of funds that decided to sell off their entire stakes by the end of the third quarter. At the top of the heap, Charles Davidson’s Wexford Capital sold off the biggest position of the “upper crust” of funds followed by Insider Monkey, comprising about $1 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dumped about $0.6 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as BT Group plc (ADR) (NYSE:BT) but similarly valued. These stocks are UBS AG (USA) (NYSE:UBS), Canadian National Railway (USA) (NYSE:CNI), Banco Bradesco SA (ADR) (NYSE:BBD), and Telefonica S.A. (ADR) (NYSE:TEF). This group of stocks’ market values are closest to BT’s market value.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $610 million. That figure was $115 million in BT’s case. Canadian National Railway (USA) (NYSE:CNI) is the most popular stock in this table. On the other hand Telefonica S.A. (ADR) (NYSE:TEF) is the least popular one with only 5 bullish hedge fund positions. BT Group plc (ADR) (NYSE:BT) 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 CNI might be a better candidate to consider taking a long position in.

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