Is JD.Com Inc (ADR) (JD) a Good Stock to Buy Now?

Due to the fact that JD.Com Inc (ADR) (NASDAQ:JD) has weathered a decline in interest from hedge fund managers, it’s easy to see that there lies a certain “tier” of fund managers that slashed their entire stakes by the end of the third quarter. Intriguingly, Israel Englander’s Millennium Management dropped the biggest position of all the investors tracked by Insider Monkey, comprising about $34.6 million in stock. Glen Kacher’s fund, Light Street Capital, also said goodbye to its stock, valued at about $31.9 million.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as JD.Com Inc (ADR) (NASDAQ:JD) but similarly valued. We will take a look at Wipro Limited (ADR) (NYSE:WIT), Edison International (NYSE:EIX), Equity Residential (NYSE:EQR), and PPL Corporation (NYSE:PPL). All of these stocks’ market caps resemble JD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WIT 8 104570 2
EIX 19 640459 -1
EQR 20 794112 -5
PPL 22 536205 -4

As you can see these stocks had an average of 17 funds with bullish positions and the average amount invested in these stocks was $519 million, which is significantly lower than the $7.41 billion figure in JD’s case. PPL Corporation (NYSE:PPL) is the most popular stock in this table. On the other hand Wipro Limited (ADR) (NYSE:WIT) is the least popular one with only eight investors having reported long positions. Compared to these stocks JD.Com Inc (ADR) (NASDAQ:JD) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none