Here is What Hedge Funds Think About National Grid plc (ADR) (NGG)

Due to the fact that National Grid plc (ADR) (NYSE:NGG) has experienced declining sentiment from the smart money, it’s easy to see that there lies a certain “tier” of funds who were dropping their positions entirely last quarter. At the top of the heap, D. E. Shaw’s D E Shaw cashed in the biggest position of the “upper crust” of funds studied by Insider Monkey, comprising about $9 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its call options, about $1.1 million worth.

Let’s now review hedge fund activity in other stocks similar to National Grid plc (ADR) (NYSE:NGG). We will take a look at Occidental Petroleum Corporation (NYSE:OXY), Duke Energy Corp (NYSE:DUK), Danaher Corporation (NYSE:DHR), and Adobe Systems Incorporated (NASDAQ:ADBE). This group of stocks’ market valuations resemble NGG’s market valuation.

As you can see these stocks had an average of 43 hedge funds with bullish positions and the average amount invested in these stocks was $1.64 billion. That figure was $344 million in NGG’s case. Adobe Systems Incorporated (NASDAQ:ADBE) is the most popular stock in this table. On the other hand Duke Energy Corp (NYSE:DUK) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks National Grid plc (ADR) (NYSE:NGG) is even less popular than DUK. 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.

Disclosure: None