Is British American Tobacco PLC (ADR) (BTI) Going to Burn These Hedge Funds?

Now, specific money managers have jumped into British American Tobacco PLC (ADR) (NYSEMKT:BTI) headfirst. Stevens Capital Management, managed by Matthew Tewksbury, established a position in British American Tobacco PLC (ADR) (NYSEMKT:BTI). Stevens Capital Management had $0.8 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated an $0.4 million position during the quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as British American Tobacco PLC (ADR) (NYSEMKT:BTI) but similarly valued. We will take a look at TOTAL S.A. (ADR) (NYSE:TOT), BP plc (ADR) (NYSE:BP), Mastercard Inc (NYSE:MA), and Bristol Myers Squibb Co. (NYSE:BMY). This group of stocks’ market valuations are closest to BTI’s market valuation.

As you can see these stocks had an average of 47 hedge funds with bullish positions and the average amount invested in these stocks was $2551 million. That figure was $399 million in BTI’s case. Mastercard Inc (NYSE:MA) is the most popular stock in this table. On the other hand TOTAL S.A. (ADR) (NYSE:TOT) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks British American Tobacco PLC (ADR) (NYSEMKT:BTI) is even less popular than TOT. To comprehend why the smart money isn’t behind this stock, further detailed analyses are necessary. This doesn’t necessarily implies that this stock doesn’t represent a good buying opportunity at the moment. 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.