Is New Oriental Education & Tech Grp (ADR) (EDU) Worthy of Your Portfolio?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. It’s worth mentioning that Ernest Chow and Jonathan Howe’s Sensato Capital Management said goodbye to the biggest position of the 700 funds followed by Insider Monkey, comprising close to $17.5 million in stock, and Richard Driehaus’ Driehaus Capital was right behind this move, as the fund cut about $16.4 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to New Oriental Education & Tech Grp (ADR) (NYSE:EDU). These stocks are Hyatt Hotels Corporation (NYSE:H), FactSet Research Systems Inc. (NYSE:FDS), Nordstrom, Inc. (NYSE:JWN), and Domino’s Pizza, Inc. (NYSE:DPZ). This group of stocks’ market valuations are closest to EDU’s market valuation.

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $482 million, compared to $289 million in EDU’s case. Domino’s Pizza, Inc. (NYSE:DPZ) is the most popular stock in this table. On the other hand FactSet Research Systems Inc. (NYSE:FDS) is the least popular one with only 16 bullish hedge fund positions. New Oriental Education & Tech Grp (ADR) (NYSE:EDU) 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 Domino’s Pizza, Inc. (NYSE:DPZ) might be a better candidate to consider taking a long position in.

Disclosure: None