Is Fanhua Inc (ADR) (FANH) A Good Stock To Buy?

Due to the fact that Fanhua Inc (ADR) (NASDAQ:FANH) has faced declining sentiment from hedge fund managers, logic holds that there is a sect of hedgies that slashed their positions entirely last quarter. Interestingly, Israel Englander’s Millennium Management sold off the biggest position of the “upper crust” of funds tracked by Insider Monkey, totaling an estimated $0.2 million in stock, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital was right behind this move, as the fund sold off its small position in the stock.

Let’s now take a look at hedge fund activity in other stocks similar to Fanhua Inc (ADR) (NASDAQ:FANH). These stocks are TravelCenters of America LLC (NYSEAMEX:TA), Phoenix New Media Ltd ADR (NYSE:FENG), Golden Entertainment Inc (NASDAQ:GDEN), and Seneca Foods Corp (NASDAQ:SENEA). This group of stocks’ market valuations are closest to FANH’s market valuation.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $6 million in FANH’s case. TravelCenters of America LLC (NYSEAMEX:TA) is the most popular stock in this table. On the other hand Seneca Foods Corp (NASDAQ:SENEA) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Fanhua Inc (ADR) (NASDAQ:FANH) is only as popular as SENEA. 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.

Disclosure: None