Is SAP AG (ADR) (SAP) Going to Burn Investors?

Judging by the fact that SAP AG (ADR) (NYSE:SAP) has weathered declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds that decided to sell off their positions entirely last quarter. Interestingly, Renaissance Technologies, one of the largest hedge funds in the world, cut the biggest stake of the 700 funds tracked by Insider Monkey, valued at close to $25.2 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its stock, about $9.3 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as SAP AG (ADR) (NYSE:SAP) but similarly valued. These stocks are BP plc (ADR) (NYSE:BP), Schlumberger Limited. (NYSE:SLB), Kraft Heinz Co (NASDAQ:KHC), and Novo Nordisk A/S (ADR) (NYSE:NVO). All of these stocks’ market caps are closest to SAP’s market cap.

As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $8.78 billion. That figure was $845 million in SAP’s case. Schlumberger Limited. (NYSE:SLB) is the most popular stock in this table. On the other hand Novo Nordisk A/S (ADR) (NYSE:NVO) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks SAP AG (ADR) (NYSE:SAP) is even less popular than NVO. 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