Chunghwa Telecom Co., Ltd (ADR) (CHT): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, some big names were leading the bulls’ herd. Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, established the most outsized position in Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT). Arrowstreet Capital had $14.3 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $4.1 million position during the quarter. The other funds with brand new CHT positions are John Overdeck and David Siegel’s Two Sigma Advisors and Matthew Tewksbury’s Stevens Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT). These stocks are The Allstate Corporation (NYSE:ALL), AvalonBay Communities Inc (NYSE:AVB), SYSCO Corporation (NYSE:SYY), and Health Care REIT, Inc. (NYSE:HCN). All of these stocks’ market caps are similar to CHT’s market cap.

As you can see these stocks had an average of 29.25 hedge funds with bullish positions and the average amount invested in these stocks was $1550 million. That figure was $82 million in CHT’s case. The Allstate Corporation (NYSE:ALL) is the most popular stock in this table. On the other hand AvalonBay Communities Inc (NYSE:AVB) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks Chunghwa Telecom Co., Ltd (ADR) (NYSE:CHT) is even less popular than AVB. 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.