Because Carnival plc (ADR) (NYSE:CUK) has witnessed falling interest from the smart money, logic holds that there lies a certain “tier” of funds that decided to sell off their entire stakes between July and September. Interestingly, D. E. Shaw’s D E Shaw dropped the largest position of the “upper crust” of funds monitored by Insider Monkey, valued at about $2.5 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $0.5 million worth of shares.
Let’s now take a look at hedge fund activity in other stocks similar to Carnival plc (ADR) (NYSE:CUK). We will take a look at McKesson Corporation (NYSE:MCK), Carnival Corporation (NYSE:CCL), eBay Inc (NASDAQ:EBAY), and Relx NV (ADR) (NYSE:RENX). This group of stocks’ market valuations are closest to CUK’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MCK | 59 | 1502964 | -7 |
| CCL | 27 | 703124 | -4 |
| EBAY | 53 | 3708761 | -5 |
| RENX | 6 | 18710 | 0 |
As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $1..48 billion. That figure was just $41 million in CUK’s case. McKesson Corporation (NYSE:MCK) is the most popular stock in this table. On the other hand Relx NV (ADR) (NYSE:RENX) is the least popular one with only six funds holding shares. Carnival plc (ADR) (NYSE:CUK) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, McKesson Corporation (NYSE:MCK) might be a better candidate to consider taking a long position in.
Disclosure: none
