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Do Hedge Funds Love ChinaCache Internatnl Hldgs Ltd (ADR) (CCIH)?

Seeing as ChinaCache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) has faced declining sentiment from hedge fund managers, it’s easy to see that there is a sect of funds that decided to sell off their full holdings by the end of the third quarter. At the top of the heap, Brian Ashford-Russell and Tim Woolley’s Polar Capital dumped the biggest position of all the hedgies monitored by Insider Monkey, totaling about $2.8 million in stock, and Eric Semler’s TCS Capital Management was right behind this move, as the fund sold off about $2 million worth. These moves are important to note, as total hedge fund interest dropped by 7 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as ChinaCache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) but similarly valued. These stocks are TeleCommunication Systems, Inc. (NASDAQ:TSYS), Tilly’s Inc (NYSE:TLYS), Capitala Finance Corp (NASDAQ:CPTA), and Kopin Corporation (NASDAQ:KOPN). All of these stocks’ market caps resemble CCIH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TSYS 12 41010 -1
TLYS 8 6551 -1
CPTA 4 1709 -1
KOPN 6 29140 -1

As you can see these stocks had an average of 7.5 hedge funds with bullish positions and the average amount invested in these stocks was $20 million. That figure was $5 million in CCIH’s case. TeleCommunication Systems, Inc. (NASDAQ:TSYS) is the most popular stock in this table. On the other hand Capitala Finance Corp (NASDAQ:CPTA) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks ChinaCache Internatnl Hldgs Ltd (ADR) (NASDAQ:CCIH) is as less popular as CPTA. 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.

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