Are Hedge Funds Right To Be Bearish On T MOBILE US INC (TMUS)?

Seeing as T MOBILE US INC (NYSE:TMUS) has faced declining sentiment from hedge fund managers, it’s safe to say that there were a few funds who sold off their positions entirely by the end of the third quarter. Interestingly, Philippe Laffont’s Coatue Management dumped the largest stake of the “upper crust” of funds monitored by Insider Monkey, worth close to $165.2 million in stock. James Dinan’s fund, York Capital Management, also dumped its stock, about $122.6 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 15 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to T MOBILE US INC (NYSE:TMUS). These stocks are Ecolab Inc. (NYSE:ECL), Ericsson (ADR) (NASDAQ:ERIC), HCA Holdings Inc (NYSE:HCA), and Enbridge Inc (USA) (NYSE:ENB). This group of stocks’ market values resemble TMUS’s market value.

As you can see these stocks had an average of 31.5 hedge funds with bullish positions and the average amount invested in these stocks was $1.57 billion. That figure was $3.20 billion in TMUS’s case. HCA Holdings Inc (NYSE:HCA) is the most popular stock in this table. On the other hand Ericsson (ADR) (NASDAQ:ERIC) is the least popular one with only 11 bullish hedge fund positions. T MOBILE US INC (NYSE:TMUS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are investing heavily in. In this regard HCA might be a better candidate to consider for a long position.