Hedge Funds Are Crazy About Carnival plc (ADR) (CUK)

Now, key hedge funds were leading the bulls’ herd. McKinley Capital Management assembled the biggest position in Carnival plc (ADR) (NYSE:CUK). McKinley Capital Management had $1.1 million invested in the company at the end of the quarter. Ionic Capital Management also initiated a $0.7 million position during the quarter. The other funds with new positions in the stock are John Overdeck and David Siegel’s Two Sigma Advisors and Matthew Tewksbury’s Stevens Capital Management.

Let’s go over hedge fund activity in other stocks similar to Carnival plc (ADR) (NYSE:CUK). These stocks are Dominion Resources, Inc. (NYSE:D), Phillips 66 (NYSE:PSX), Shire PLC (ADR) (NASDAQ:SHPG), and Adobe Systems Incorporated (NASDAQ:ADBE). This group of stocks’ market values resemble CUK’s market value.

As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $3.42 billion. That figure was just $37 million in CUK’s case. Shire PLC (ADR) (NASDAQ:SHPG) is the most popular stock in this table, while Dominion Resources, Inc. (NYSE:D) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks, Carnival plc (ADR) (NYSE:CUK) is even less popular than D. 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.