Here’s Why Nokia Corp (ADR) (NOK) Is in Spotlight Today

Because Nokia Corporation (ADR) (NYSE:NOK) has witnessed a decline in interest from the aggregate hedge fund industry, it’s easy to see that there lies a certain “tier” of money managers that decided to sell off their entire stakes during the first three months of 2016. Intriguingly, Spencer M. Waxman’s Shannon River Fund Management sold off the biggest position of the 700 funds monitored by Insider Monkey, totaling close to $19.7 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also cut its stock, about $16.6 million worth. These moves are interesting, as total hedge fund interest was cut by six funds heading into Q2.

Let’s now review hedge fund activity in other stocks similar to Nokia Corporation (ADR) (NYSE:NOK). We will take a look at Vale SA (ADR) (NYSE:VALE), Archer Daniels Midland Company (NYSE:ADM), United Continental Holdings Inc (NYSE:UAL), and DISH Network Corp. (NASDAQ:DISH). This group of stocks’ market caps match NOK’s market cap.

As you can see these stocks had an average of 40.5 hedge funds with bullish positions and the average amount invested in these stocks was $1695 million. That figure was $391 million in NOK’s case. United Continental Holdings Inc (NYSE:UAL) is the most popular stock in this table. On the other hand Archer Daniels Midland Company (NYSE:ADM) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks Nokia Corporation (ADR) (NYSE:NOK) is even less popular than ADM. 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