Hedge Funds Are Crazy About VimpelCom Ltd (ADR) (VIP)

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As industrywide interest jumped, key hedge funds were breaking ground themselves. Benjamin A. Smith’s Laurion Capital Management initiated the most outsized position in VimpelCom Ltd (ADR) (NASDAQ:VIP), followed by John Brennan’s Sirios Capital Management, which initiated a $15.4 million position during the quarter. The other funds with brand new VIP positions are Daniel S. Och’s OZ Management, Guy Shahar’s DSAM Partners, and Simon Sadler’s Segantii Capital.

Let’s now take a look at hedge fund activity in other stocks similar to VimpelCom Ltd (ADR) (NASDAQ:VIP). These stocks are Turquoise Hill Resources Ltd (NYSE:TRQ), EQT GP Holdings LP (NYSE:EQGP), Carlisle Companies, Inc. (NYSE:CSL), and Equity Lifestyle Properties, Inc. (NYSE:ELS). This group of stocks’ market valuations match VIP’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TRQ 18 469171 -2
EQGP 3 24730 -1
CSL 24 362307 2
ELS 11 271254 -3

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $282 million. That figure was $253 million in VIP’s case. Carlisle Companies, Inc. (NYSE:CSL) is the most popular stock in this table. On the other hand EQT GP Holdings LP (NYSE:EQGP) is the least popular one with only 3 bullish hedge fund positions. VimpelCom Ltd (ADR) (NASDAQ:VIP) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CSL might be a better candidate to consider a long position.

Disclosure: none.

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