Is WNS (Holdings) Limited (ADR) (WNS) A Good Stock to Buy?

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Judging by the fact that WNS (Holdings) Limited (ADR) (NYSE:WNS) has witnessed a decline in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of money managers that elected to cut their entire stakes last quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital got rid of the biggest investment of the “upper crust” of funds watched by Insider Monkey, worth an estimated $12 million in stock, and Ernest Chow and Jonathan Howe’s Sensato Capital Management was right behind this move, as the fund sold off about $2.9 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to WNS (Holdings) Limited (ADR) (NYSE:WNS). These stocks are TriNet Group Inc (NYSE:TNET), Simmons First National Corporation (NASDAQ:SFNC), New York REIT Inc (NYSE:NYRT), and Shutterfly, Inc. (NASDAQ:SFLY). This group of stocks’ market valuations are closest to WNS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TNET 14 124160 -7
SFNC 6 9290 0
NYRT 16 131295 -4
SFLY 23 460368 1

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $181 million. That figure was $65 million in WNS’s case. Shutterfly, Inc. (NASDAQ:SFLY) is the most popular stock in this table. On the other hand Simmons First National Corporation (NASDAQ:SFNC) is the least popular one with only 6 bullish hedge fund positions. WNS (Holdings) Limited (ADR) (NYSE:WNS) 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 SFLY might be a better candidate to consider taking a long position in.

Disclosure: None

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