Is Carnival plc (ADR) (CUK) Worthy of Your Portfolio?

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