58.com Inc (ADR) (NYSE:WUBA) is in the news today after one of its board of directors, Dong Yang, announced that he will resign effective May 25, 2016. The resignation isn’t due to any disagreement with 58.com regarding its finance, business, accounting, or any other affairs. 58.com’s board has already appointed Chi Zhang to replace Dong Yang. CEO Michael Jinbo Yao commented,
“On behalf of the Board and the company, I would like to thank Dong for the contributions that he has made during his tenure on the Board, and wish him continued success in the future.”
58.com Inc (ADR) (NYSE:WUBA) shares are down 23% year-to-date and could use some new thinking to drive earnings higher. Meanwhile, among hedge funds, 58.com is not very popular, although it registered an increase in the number of funds with long positions during the first quarter of 2016.
At Insider Monkey, we pore over the filings of more than 750 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30. In this article, we will use that wealth of knowledge to determine whether or not 58.com Inc (ADR) (NYSE:WUBA) makes for a good investment right now.
58.com Inc (ADR) (NYSE:WUBA) was in 27 hedge funds’ portfolios at the end of March. WUBA shareholders have witnessed an increase in support from the world’s most elite money managers lately as there were 25 hedge funds in our database with WUBA holdings at the end of the previous quarter. At the end of this article we will also compare WUBA to other stocks including AGL Resources Inc. (NYSE:GAS), Enbridge Energy Partners, L.P. (NYSE:EEP), and Shire PLC (ADR) (NASDAQ:SHPG) to get a better sense of its popularity.
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According to Insider Monkey’s hedge fund database, Andreas Halvorsen’s Viking Global has the largest position in 58.com Inc (ADR) (NYSE:WUBA), worth close to $161.3 million, comprising 0.7% of its total 13F portfolio. The second most bullish fund manager is J Kevin Kenny Jr of Emerging Sovereign Group, with a $85.5 million position; 5.2% of its 13F portfolio is allocated to the company. Remaining professional money managers that are bullish include Daniel S. Och’s OZ Management, Lei Zhang’s Hillhouse Capital Management and Ted Kang’s Kylin Management.
On the next page, we are going to take a closer look at some funds that initiated stakes in 58.com during the first three months of 2016.