As aggregate interest increased, specific money managers were leading the bulls’ herd. Two Sigma Advisors, led by John Overdeck and David Siegel, assembled the largest position in Novo Nordisk A/S (ADR) (NYSE:NVO). Two Sigma Advisors had $11.6 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also made a $7.4 million investment in the stock during the quarter. The following funds were also among the new NVO investors: Ken Griffin’s Citadel Investment Group, Mike Vranos’ Ellington, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.
Let’s also examine hedge fund activity in other stocks similar to Novo Nordisk A/S (ADR) (NYSE:NVO). We will take a look at Bank of America Corp (NYSE:BAC), Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM), Altria Group Inc (NYSE:MO), and UnitedHealth Group Inc. (NYSE:UNH). All of these stocks’ market caps resemble NVO’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 59 hedge funds with bullish positions and the average amount invested in these stocks was $3.61 billion. That figure was $1.25 billion in NVO’s case. Bank of America Corp (NYSE:BAC) is the most popular stock in this table. On the other hand Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) is the least popular one with only 31 bullish hedge fund positions. Compared to these stocks Novo Nordisk A/S (ADR) (NYSE:NVO) is even less popular than TSM. 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.