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Hedge Funds Are Selling Noah Holdings Limited (ADR) (NOAH)

Seeing as Noah Holdings Limited (ADR) (NYSE:NOAH) has experienced a declination in interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few money managers that decided to sell off their full holdings by the end of the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group dumped the biggest position of the “upper crust” of funds followed by Insider Monkey, valued at about $1.5 million in stock. Richard Driehaus’s fund, Driehaus Capital, also sold off its holding, roughly $1 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest dropped by 3 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Noah Holdings Limited (ADR) (NYSE:NOAH). We will take a look at PMC-Sierra Inc (NASDAQ:PMCS), Apogee Enterprises, Inc. (NASDAQ:APOG), Natus Medical Inc (NASDAQ:BABY), and Gogo Inc (NASDAQ:GOGO). This group of stocks’ market caps are closest to NOAH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PMCS 34 540004 7
APOG 20 66327 1
BABY 19 135860 -1
GOGO 18 166501 2

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $227 million. That figure was a minor $28 million in NOAH’s case. PMC-Sierra Inc (NASDAQ:PMCS) is the most popular stock in this table, while Gogo Inc (NASDAQ:GOGO) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Noah Holdings Limited (ADR) (NYSE:NOAH) is even less popular than GOGO. 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.

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