Do Hedge Funds Love Sony Corporation (ADR) (SNE)?

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With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. The aforementioned Arlington Value Capital initiated the biggest position in Sony Corporation (ADR) (NYSE:SNE), while James Dinan’s York Capital Management also initiated a $5.8 million position during the quarter. The other funds with brand new SNE positions are David Stemerman’s Conatus Capital Management, Matthew Hulsizer’s PEAK6 Capital Management, and Jacob Gottlieb’s Visium Asset Management.

Let’s check out hedge fund activity in other stocks similar to Sony Corporation (ADR) (NYSE:SNE). These stocks are Anadarko Petroleum Corporation (NYSE:APC), China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU), Estee Lauder Companies Inc (NYSE:EL), and Manulife Financial Corporation (USA) (NYSE:MFC). This group of stocks’ market caps resemble SNE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
APC 70 3382512 -5
CHU 9 33921 1
EL 27 466256 -4
MFC 16 245006 1

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $1.03 billion, as compared to $328 million in SNE’s case. Anadarko Petroleum Corporation (NYSE:APC) is the most popular stock in this table. On the other hand China Unicom (Hong Kong) Limited (ADR) (NYSE:CHU) is the least popular one with only 9 bullish hedge fund positions. Sony Corporation (ADR) (NYSE:SNE) 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 APC might be a better candidate to consider a long position.

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