Hedge Funds Are Crazy About Xinyuan Real Estate Co., Ltd. (ADR) (XIN)

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Consequently, key money managers were breaking ground themselves. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, initiated the most outsized position in Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN). Arrowstreet Capital had $2.3 million invested in the company at the end of the quarter. Cliff Asness’s AQR Capital Management also initiated a $0.1 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks similar to Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN). These stocks are Tarena International Inc(ADR) (NASDAQ:TEDU), First Community Bancshares Inc (NASDAQ:FCBC), Tsakos Energy Navigation Ltd. (NYSE:TNP), and TG Therapeutics Inc (NASDAQ:TGTX). This group of stocks’ market values are similar to XIN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TEDU 7 22223 -1
FCBC 4 5955 0
TNP 10 34924 -5
TGTX 5 96973 -4

As you can see these stocks had an average of 6.5 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was $20 million in XIN’s case. Tsakos Energy Navigation Ltd. (NYSE:TNP) is the most popular stock in this table. On the other hand First Community Bancshares Inc (NASDAQ:FCBC) is the least popular one with only 4 bullish hedge fund positions. Xinyuan Real Estate Co., Ltd. (ADR) (NYSE:XIN) 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 TNP might be a better candidate to consider taking a long position in.

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Disclosure: None




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