Do Hedge Funds Love Alcatel Lucent SA (ADR) (ALU)?

As one would reasonably expect, key hedge funds have jumped into Alcatel Lucent SA (ADR) (NYSE:ALU) headfirst. Arrowgrass Capital Partners initiated the largest position in Alcatel Lucent SA (ADR) (NYSE:ALU). Arrowgrass Capital Partners had $9.4 million invested in the company at the end of the quarter. Hutchin Hill Capital also initiated an $8.2 million position during the quarter. The other funds with new positions in the stock are Wojciech Uzdelewicz’s Espalier Global Management, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks similar to Alcatel Lucent SA (ADR) (NYSE:ALU). These stocks are Martin Marietta Materials, Inc. (NYSE:MLM), Banco de Chile (ADR) (NYSE:BCH), Alaska Air Group, Inc. (NYSE:ALK), and Ralph Lauren Corp (NYSE:RL). This group of stocks’ market values matches Alcatel Lucent SA (ADR) (NYSE:ALU)’s market value.

As you can see, these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $994 million. That figure was $101 million in Alcatel Lucent SA (ADR) (NYSE:ALU)’s case. Martin Marietta Materials, Inc. (NYSE:MLM) is the most popular stock in this table. On the other hand, Banco de Chile (ADR) (NYSE:BCH) is the least popular one with only 4 bullish hedge fund positions. Alcatel Lucent SA (ADR) (NYSE:ALU) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Martin Marietta Materials, Inc. (NYSE:MLM) might be a better candidate to consider a long position.