Should You Buy China Unicom (Hong Kong) Limited (ADR) (CHU)?

Page 2 of 2

As aggregate interest increased, key money managers have jumped into China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU) headfirst. Balyasny Asset Management, led by Dmitry Balyasny, established the biggest position in China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU). Balyasny Asset Management had $3.8 million invested in the company at the end of the quarter. Maplelane Capital also initiated a $3 million position during the quarter. The other funds with new positions in the stock are Jane Mendillo’s Harvard Management Co, and Mike Vranos’ Ellington.

Let’s also examine hedge fund activity in other stocks similar to China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU). These stocks are Cognizant Technology Solutions Corp (NASDAQ:CTSH), CSX Corporation (NYSE:CSX), HCA Holdings Inc (NYSE:HCA), and Norfolk Southern Corp. (NYSE:NSC). All of these stocks’ market caps are similar to CHU’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CTSH 47 1355422 7
CSX 43 734912 2
HCA 62 3313044 -10
NSC 36 758740 4

As you can see these stocks had an average of 47 hedge funds with bullish positions and the average amount invested in these stocks was $1541 million. That figure was $39 million in CHU’s case. HCA Holdings Inc (NYSE:HCA) is the most popular stock in this table. On the other hand Norfolk Southern Corp. (NYSE:NSC) is the least popular one with only 36 bullish hedge fund positions. Compared to these stocks China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU) is even less popular than NSC. 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Suggested Articles:
Top Agriculture Producing Countries
Biggest Airports In The World
States With Easiest Bar Exams In The US




Page 2 of 2