Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Do Hedge Funds Love Credit Suisse Group AG (ADR) (CS)?

Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that’s why their assets under management continue to swell). We believe the hedge fund sentiment should serve as a crucial tool of an individual investor’s stock selection process, as it may offer great insights of how the brightest minds of the finance industry feel about specific stocks. After all, these people have access to smartest analysts and expensive data/information sources that individual investors can’t match. So should one consider investing in Credit Suisse Group AG (ADR) (NYSE:CS)? The smart money sentiment can provide an answer to this question.

Credit Suisse Group AG (ADR) (NYSE:CS) was in 7 hedge funds’ portfolios at the end of the third quarter of 2015 and even though the stock lost 21% since the beginning of the third quarter, the number of funds with long positions inched down by one. Moreover, at the end of this article we will also compare CS to other stocks, including LyondellBasell Industries NV (NYSE:LYB), Suncor Energy Inc. (USA) (NYSE:SU), and Cognizant Technology Solutions Corp (NASDAQ:CTSH) to get a better sense of its popularity.

Follow Credit Suisse Group (NYSE:CS)
Trade (NYSE:CS) Now!

To most market participants, hedge funds are seen as worthless, outdated investment tools of years past. While there are more than an 8000 funds with their doors open at the moment, Our experts choose to focus on the masters of this group, about 700 funds. These hedge fund managers manage the majority of the hedge fund industry’s total capital, and by keeping an eye on their inimitable investments, Insider Monkey has brought to light a number of investment strategies that have historically outperformed Mr. Market. Insider Monkey’s small-cap hedge fund strategy surpassed the S&P 500 index by 12 percentage points per annum for a decade in their back tests.

Keeping this in mind, let’s take a look at the recent action encompassing Credit Suisse Group AG (ADR) (NYSE:CS).

How have hedgies been trading Credit Suisse Group AG (ADR) (NYSE:CS)?

At the end of the third quarter, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock and with hedgies’ capital changing hands, there exists a select group of key hedge fund managers who were boosting their holdings significantly (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Ken Fisher’s Fisher Asset Management has the largest position in Credit Suisse Group AG (ADR) (NYSE:CS), worth close to $249.7 million, amounting to 0.5% of its total 13F portfolio. Coming in second is PEAK6 Capital Management, managed by Matthew Hulsizer, which holds a $15.4 million call position; 0.1% of its 13F portfolio is allocated to the company. Other professional money managers that are bullish, encompass Mike Vranos’s Ellington and David Dreman’s Dreman Value Management.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.