Relx NV (ADR) (RENX): Is It Going to Burn Investors?

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions either. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Relx NV (ADR) (NYSE:RENX) but similarly valued. We will take a look at NVIDIA Corporation (NASDAQ:NVDA), Barclays PLC (ADR) (NYSE:BCS), Capital One Financial Corp. (NYSE:COF), and Infosys Ltd ADR (NYSE:INFY). All of these stocks’ market caps are similar to RENX’s market cap.

As you can see these stocks had an average of 31 hedge funds with bullish positions and the average amount invested in these stocks was $1.10 billion. That figure was just $19 million in RENX’s case. NVIDIA Corporation (NASDAQ:NVDA) is the most popular stock in this table. On the other hand Barclays PLC (ADR) (NYSE:BCS) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Relx NV (ADR) (NYSE:RENX) is even less popular than BCS. 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