Do Hedge Funds Love Telefonica Brasil SA (ADR) (VIV)?

Consequently, specific money managers were breaking ground themselves. Prince Street Capital Management, led by David Halpert, established the most valuable position in Telefonica Brasil SA (ADR) (NYSE:VIV). Prince Street Capital Management had $23.8 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also made a $0.5 million investment in the stock during the quarter. The other funds with new positions in the stock are D E Shaw, one of the largest hedge funds in the world, and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Telefonica Brasil SA (ADR) (NYSE:VIV) but similarly valued. These stocks are AvalonBay Communities Inc (NYSE:AVB), General Growth Properties Inc (NYSE:GGP), CBS Corporation (NYSE:CBS), and Apache Corporation (NYSE:APA). All of these stocks’ market caps resemble VIV’s market cap.

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $1247 million. That figure was $158 million in VIV’s case. CBS Corporation (NYSE:CBS) is the most popular stock in this table. On the other hand AvalonBay Communities Inc (NYSE:AVB) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Telefonica Brasil SA (ADR) (NYSE:VIV) 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.