Are Investors Right to Avoid Baozun Inc (ADR) (BZUN)?

Due to the fact that Baozun Inc (ADR) (NASDAQ:BZUN) has experienced bearish sentiment from the smart money, it’s easy to see that there lies a certain “tier” of funds who were dropping their positions entirely heading into Q4. Intriguingly, Andrew Weiss’ Weiss Asset Management dumped the biggest position of the 700 funds followed by Insider Monkey, worth an estimated $0.4 million in stock. Ian P. Murray’s fund, Lanexa Global Management, also said goodbye to its stock, about $0.1 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Baozun Inc (ADR) (NASDAQ:BZUN). These stocks are Zix Corporation (NASDAQ:ZIXI), Anthera Pharmaceuticals Inc (NASDAQ:ANTH), World Acceptance Corp. (NASDAQ:WRLD), and Viate Pharmaceuticals Inc (NASDAQ:VTAE). This group of stocks’ market valuations match Baozun Inc’s market valuation.

As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was a mere $6 million in Baozun Inc’s case. World Acceptance Corp. (NASDAQ:WRLD) is the most popular stock in this table. On the other hand Anthera Pharmaceuticals Inc (NASDAQ:ANTH) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Baozun Inc (ADR) (NASDAQ:BZUN) is even less popular than Anthera. Considering that hedge funds aren’t at all 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.