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.

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