Is Wipro Limited (ADR) (WIT) A Good Stock to Buy?

With general bullishness amongst the heavyweights, some big names have jumped into Wipro Limited (ADR) (NYSE:WIT) headfirst. Stevens Capital Management assembled the most outsized position in Wipro Limited (ADR) (NYSE:WIT). Stevens Capital Management had $0.5 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.4 million investment in the stock during the quarter. The only other fund with a brand new WIT position was Michael Platt and William Reeves’ BlueCrest Capital Mgmt.

Let’s now take a look at hedge fund activity in other stocks similar to Wipro Limited (ADR) (NYSE:WIT). These stocks are Edison International (NYSE:EIX), Equity Residential (NYSE:EQR), PPL Corporation (NYSE:PPL), and Aviva Plc (ADR) (NYSE:AV). This group of stocks’ market values resemble WIT’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EIX 19 640459 -1
EQR 20 794112 -5
PPL 22 536205 -4
AV 5 2883 1

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $493 million. That figure was $105 million in WIT’s case. PPL Corporation (NYSE:PPL) is the most popular stock in this table. On the other hand Aviva Plc (ADR) (NYSE:AV) is the least popular one with only 5 bullish hedge fund positions. Wipro Limited (ADR) (NYSE:WIT) 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 PPL might be a better candidate to consider taking a long position in.

Disclosure: None