Should You Follow the Smart Money Into NetEase Inc (ADR) (NTES)?

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As aggregate interest increased, specific money managers have been driving this bullishness. Millennium Management, managed by Israel Englander, established the largest position in NetEase Inc (ADR) (NASDAQ:NTES). Millennium Management had $56.1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $27.1 million investment in the stock during the quarter. The other funds with brand new NTES positions are Bernard Selz’s Selz Capital, D E Shaw, and David Costen Haley’s HBK Investments.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as NetEase Inc (ADR) (NASDAQ:NTES) but similarly valued. These stocks are Workday Inc (NYSE:WDAY), Credicorp Ltd. (USA) (NYSE:BAP), Parker-Hannifin Corporation (NYSE:PH), and Entergy Corporation (NYSE:ETR). This group of stocks’ market valuations resemble NTES’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WDAY 29 1406330 4
BAP 22 481522 1
PH 27 1331502 -4
ETR 24 852366 1

As you can see these stocks had an average of 25.5 hedge funds with bullish positions and the average amount invested in these stocks was $1.02 billion. That figure was $2.98 million in NTES’s case. Workday Inc (NYSE:WDAY) is the most popular stock in this table. On the other hand Credicorp Ltd. (USA) (NYSE:BAP) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks NetEase Inc (ADR) (NASDAQ:NTES) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, and that ownership spiked last quarter, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None

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