Is Shinhan Financial Group Co., Ltd. (ADR) (SHG) Going To Burn Investors?

Since Shinhan Financial Group Co., Ltd. (ADR) (NYSE:SHG) has witnessed falling interest from hedge fund managers, logic holds that there were a few fund managers that elected to cut their positions entirely heading into Q4. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the biggest stake of the 700 funds followed by Insider Monkey, totaling close to $2.3 million in stock. Jim Simons’ fund, Renaissance Technologies, also dropped its stock, about $0.7 million worth.

Let’s now review hedge fund activity in other stocks similar to Shinhan Financial Group Co., Ltd. (ADR) (NYSE:SHG). These stocks are Vipshop Holdings Ltd – ADR (NYSE:VIPS), Shire PLC (ADR) (NASDAQ:SHPG), EnergySolutions, Inc. (NYSE:ES), and Marriott International Inc (NYSE:MAR). This group of stocks’ market caps are similar to SHG’s market cap.

As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $1.84 billion. That figure was just $14 million in SHG’s case. Shire PLC (ADR) (NASDAQ:SHPG) is the most popular stock in this table. On the other hand EnergySolutions, Inc. (NYSE:ES) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks Shinhan Financial Group Co., Ltd. (ADR) (NYSE:SHG) is even less popular than ES. 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