Is China Petroleum & Chemical Corp (ADR) (SNP) Going to Burn Investors?

As industry-wide interest jumped, specific money managers were leading the bulls’ herd. LMR Partners, led by Ben Levine, Andrew Manuel and Stefan Renold, initiated the most outsized position in China Petroleum & Chemical Corp (ADR) (NYSE:SNP). LMR Partners had $1.4 million invested in the company at the end of the quarter. Ernest Chow and Jonathan Howe’s Sensato Capital Management also initiated a $0.8 million position during the quarter. The following funds were also among the new SNP investors: Ken Griffin’s Citadel Investment Group and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s go over hedge fund activity in other stocks similar to China Petroleum & Chemical Corp (ADR) (NYSE:SNP). These stocks are Honeywell International Inc. (NYSE:HON), Eli Lilly & Co. (NYSE:LLY), NIKE, Inc. (NYSE:NKE), and Walgreens Boots Alliance Inc (NASDAQ:WBA). This group of stocks’ market valuations are similar to SNP’s market valuation.

As you can see these stocks had an average of 55 hedge funds with bullish positions and the average amount invested in these stocks was $2.84 billion. That figure was just $41 million in SNP’s case. Walgreens Boots Alliance Inc (NASDAQ:WBA) is the most popular stock in this table. On the other hand Honeywell International Inc. (NYSE:HON) is the least popular one with only 48 bullish hedge fund positions. Compared to these stocks China Petroleum & Chemical Corp (ADR) (NYSE:SNP) is even less popular than HON. 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 at all, considering its size.

Disclosure: None