Is China Telecom Corporation Limited (ADR) (CHA) A Good Stock to Buy?

With general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. Granite Point Capital assembled the most outsized position in China Telecom Corporation Limited (ADR) (NYSE:CHA). Granite Point Capital had $0.4 million invested in the company at the end of the quarter. Harvard Management Co also made a $0.2 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as China Telecom Corporation Limited (ADR) (NYSE:CHA) but similarly valued. We will take a look at Yahoo! Inc. (NASDAQ:YHOO), Syngenta AG (ADR) (NYSE:SYT), Aetna Inc. (NYSE:AET), and Automatic Data Processing (NASDAQ:ADP). All of these stocks’ market caps are closest to CHA’s market cap.

As you can see these stocks had an average of 52 hedge funds with bullish positions and the average amount invested in these stocks was $3.16 billion. That figure was just $13 million in CHA’s case. Yahoo! Inc. (NASDAQ:YHOO) is the most popular stock in this table. On the other hand Automatic Data Processing (NASDAQ:ADP) is the least popular one with only 32 bullish hedge fund positions. Compared to these stocks China Telecom Corporation Limited (ADR) (NYSE:CHA) is even less popular than ADP. 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.

Disclosure: None