How China Mobile Ltd. (ADR) (CHL) Stacks Up Against Similarly Valued Stocks

Because China Mobile Ltd. (ADR) (NYSE:CHL) has gone through declining sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of fund managers who were dropping their positions entirely last quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital got rid of the biggest stake of all the investors monitored by Insider Monkey, worth close to $83.4 million in stock, and Cliff Asness’ AQR Capital Management was right behind this move, as the fund cut about $15.7 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to China Mobile Ltd. (ADR) (NYSE:CHL). These stocks are Verizon Communications Inc. (NYSE:VZ), Wal-Mart Stores, Inc. (NYSE:WMT), JPMorgan Chase & Co. (NYSE:JPM), and The Procter & Gamble Company (NYSE:PG). This group of stocks’ market values are closest to CHL’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VZ 54 3183595 2
WMT 71 5468754 13
JPM 98 7608932 -1
PG 71 20098044 15

As you can see these stocks had an average of 74 funds with bullish positions and the average amount invested in these stocks was $9.09 billion, which is significantly higher than the $328 million figure in CHL’s case. JPMorgan Chase & Co. (NYSE:JPM) is the most popular stock in this table. On the other hand Verizon Communications Inc. (NYSE:VZ) is the least popular one with only 54 bullish hedge fund positions. Compared to these stocks China Mobile Ltd. (ADR) (NYSE:CHL) is even less popular than VZ. 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.