U.S. stocks are down substantially on Monday trading, trailing European stocks, driven by concerns following the U.K.’s vote to leave the E.U. Also tumbling big-time are oil prices, the British pound, financial stocks and U.S. Treasury Yields.
Among the individual stocks posting large declines today are BT Group plc (ADR) (NYSE:BT), Vodafone Group Plc (ADR) (NASDAQ:VOD), Prudential Public Limited Company (ADR) (NYSE:PUK), Carnival Corp (NYSE:CCL) and Royal Caribbean Cruises Ltd (NYSE:RCL). So, let’s take a look into the events behind the moves of these stocks, and see what the funds in our database think about the companies in question.
At Insider Monkey, we track around 770 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).
BT Group Continues To Tumble On Brexit
Let’s start with BT Group plc (ADR) (NYSE:BT), which has lost over 6% during Monday intraday trading. The London-based communications services company will likely feel the impact of the Brexit, as it derives most of its revenue from the U.K. Nonetheless, it should be noted that its global services division will contribute with a larger chunk of sales, as foreign currencies will be worth more than they used to versus the Pound. Between Friday and Monday alone, shares of BT Group plummeted more than 22.75%. As of the end of the first quarter of 2016, BT Group plc (ADR) (NYSE:BT) counted 11 hedge funds in our database long the stock, almost double the number of supporters it had in the previous quarter. The largest institutional investor of record was Jim Simons’ Renaissance Technologies, which last disclosed ownership of 3.87 million shares, valued at more than $124 million on March 31.
Vodafone Also Suffers From Brexit
Next up is Vodafone Group Plc (ADR) (NASDAQ:VOD), another UK-based communications company that felt the full weight of the Brexit, losing 6.2% on Monday, even though the firm is transitioning to the Euro seeking to reduce currency volatility. Among the funds that we track, 21 held long stake in Vodafone Group Plc (ADR) (NASDAQ:VOD) at the end of March. Once again, Renaissance Technologies was a large shareholder, with almost 2 million shares, trailing Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, with 5.09 million shares.