Wipro Limited (ADR) (WIT): Are Hedge Funds Right About This Stock?

As aggregate interest increased, specific money managers were leading the bulls’ herd. D. E. Shaw, initiated the most valuable position in Wipro Limited (ADR) (NYSE:WIT). D E Shaw had $0.5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.2 million investment in the stock during the quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Wipro Limited (ADR) (NYSE:WIT) but similarly valued. These stocks are Las Vegas Sands Corp. (NYSE:LVS), Halliburton Company (NYSE:HAL), Illinois Tool Works Inc. (NYSE:ITW), and Liberty Global PLC LiLAC Class C (NASDAQ:LILAK). This group of stocks’ market caps resemble WIT’s market cap.

As you can see these stocks had an average of 40 hedge funds with bullish positions and the average amount invested in these stocks was $1.34 billion, significantly higher than the $88 million figure in WIT’s case. Halliburton Company (NYSE:HAL) is the most popular stock in this table. On the other hand, Las Vegas Sands Corp. (NYSE:LVS) is the least popular one with only 29 bullish hedge fund positions. Compared to these stocks Wipro Limited (ADR) (NYSE:WIT) is even less popular than LVS. 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.