Is TELUS Corporation (USA) (TU) Worthy of Your Portfolio?

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Since TELUS Corporation (USA) (NYSE:TU) has weathered a decline in interest from the smart money, logic holds that there is a sect of fund managers that slashed their entire stakes in the third quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the biggest position of all the investors tracked by Insider Monkey, worth an estimated $2 million in stock, and Brian Ashford-Russell and Tim Woolley’s Polar Capital was right behind this move, as the fund dropped about $1.8 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as TELUS Corporation (USA) (NYSE:TU) but similarly valued. We will take a look at Continental Resources, Inc. (NYSE:CLR), Delphi Automotive PLC (NYSE:DLPH), ORIX Corporation (ADR) (NYSE:IX), and American Airlines Group Inc (NASDAQ:AAL). This group of stocks’ market values match TU’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CLR 44 712414 0
DLPH 34 650266 4
IX 6 5672 2
AAL 50 2028200 -6

As you can see these stocks had an average of 34 funds with bullish positions and the average amount invested in these stocks was $849 million. That figure was $225 million in TU’s case. American Airlines Group Inc (NASDAQ:AAL) is the most popular stock in this table. On the other hand ORIX Corporation (ADR) (NYSE:IX) is the least popular one with only six bullish hedge fund positions. TELUS Corporation (USA) (NYSE:TU) 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 AAL might be a better candidate to consider taking a long position in.

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Disclosure: None




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