What Do Hedge Funds Think of Prudential Public Limited Company (ADR) (PUK)?

Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dropped the biggest stake of the 700 funds watched by Insider Monkey, totaling an estimated $9 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also dropped its stock, about $0.4 million worth. These transactions are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Prudential Public Limited Company (ADR) (NYSE:PUK) but similarly valued. These stocks are Honda Motor Co Ltd (ADR) (NYSE:HMC), Ford Motor Company (NYSE:F), BT Group plc (ADR) (NYSE:BT), and The Bank of Nova Scotia (USA) (NYSE:BNS). This group of stocks’ market caps are similar to PUK’s market cap.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $362 million. That figure was $135 million in PUK’s case. Ford Motor Company (NYSE:F) is the most popular stock in this table. On the other hand Honda Motor Co Ltd (ADR) (NYSE:HMC) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Prudential Public Limited Company (ADR) (NYSE:PUK) is even less popular than HMC. 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.