Is Thomson Reuters Corporation (USA) (TRI) Going to Burn Investors?

Judging by the fact that Thomson Reuters Corporation (USA) (NYSE:TRI) has weathered falling interest from the smart money, we can see that there lies a certain “tier” of money managers who sold off their entire stakes by the end of the third quarter. Intriguingly, David E. Shaw’s D E Shaw cashed in the largest stake of all the hedgies watched by Insider Monkey, worth about $6 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its call options, about $0.5 million worth.

Let’s also examine hedge fund activity in other stocks similar to Thomson Reuters Corporation (USA) (NYSE:TRI). These stocks are Canadian Imperial Bank of Commerce (USA) (NYSE:CM), PG&E Corporation (NYSE:PCG), The Blackstone Group L.P. (NYSE:BX), and LIBERTY GLOBAL PLC (NASDAQ:LBTYK). This group of stocks’ market valuations are closest to TRI’s market valuation.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1.87 billion. That figure was $130 million in TRI’s case. LIBERTY GLOBAL PLC (NASDAQ:LBTYK) is the most popular stock in this table. On the other hand Canadian Imperial Bank of Commerce (USA) (NYSE:CM) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Thomson Reuters Corporation (USA) (NYSE:TRI) is even less popular than CM. 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