Is Sasol Limited (ADR) (SSL) Worthy of Your Portfolio?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cashed in their positions entirely. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cashed in the largest position of all the investors watched by Insider Monkey, comprising an estimated $34.1 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also said goodbye to its stock, about $0.8 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Sasol Limited (ADR) (NYSE:SSL) but similarly valued. These stocks are Molson Coors Brewing Company (NYSE:TAP), POSCO (ADR) (NYSE:PKX), HCP, Inc. (NYSE:HCP), and Incyte Corporation (NASDAQ:INCY). This group of stocks’ market values are similar to SSL’s market value.

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $1726 million. That figure was just $23 million in SSL’s case. Molson Coors Brewing Company (NYSE:TAP) is the most popular stock in this table. On the other hand POSCO (ADR) (NYSE:PKX) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Sasol Limited (ADR) (NYSE:SSL) is even less popular than PKX. 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. This isn’t necessarily bad news. 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.

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