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Noah Holdings Limited (ADR) (NOAH): Hedge Funds Are Snapping Up

As industrywide interest jumped, key hedge funds have jumped into Noah Holdings Limited (ADR) (NYSE:NOAH) headfirst. Granite Point Capital, led by Warren Lammert, created the most outsized position in Noah Holdings Limited (ADR) (NYSE:NOAH). Granite Point Capital had $0.4 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.4 million investment in the stock during the quarter. The following funds were also among the new NOAH investors: Cliff Asness’ AQR Capital Management and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Noah Holdings Limited (ADR) (NYSE:NOAH) but similarly valued. We will take a look at Children’s Place Retail Stores, Inc. (NASDAQ:PLCE), American States Water Co (NYSE:AWR), Innospec Inc. (NASDAQ:IOSP), and Dynegy Inc. (NYSE:DYN). All of these stocks’ market caps are similar to NOAH’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PLCE 22 216244 -7
AWR 8 42205 0
IOSP 18 141063 0
DYN 36 760238 -7

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $290 million. That figure was $53 million in NOAH’s case. Dynegy Inc. (NYSE:DYN) is the most popular stock in this table. On the other hand American States Water Co (NYSE:AWR) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Noah Holdings Limited (ADR) (NYSE:NOAH) is even less popular than AWR. 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: None

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