Should You Add SK Telecom Co., Ltd. (ADR) (SKM) to Your Portfolio?

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As one would reasonably expect, key money managers were breaking ground themselves. JHL Capital Group initiated the biggest position in SK Telecom Co., Ltd. (ADR) (NYSE:SKM). Ernest Chow and Jonathan Howe’s Sensato Capital Management also made a $0.3 million investment in the stock during the quarter. The other funds with brand new SKM positions are Matthew Hulsizer’s PEAK6 Capital Management and Louis Navellier’s Navellier & Associates.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as SK Telecom Co., Ltd. (ADR) (NYSE:SKM) but similarly valued. These stocks are Credicorp Ltd. (USA) (NYSE:BAP), Ball Corporation (NYSE:BLL), Skyworks Solutions Inc (NASDAQ:SWKS), and Digital Realty Trust, Inc. (NYSE:DLR). This group of stocks’ market valuations are similar to SKM’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BAP 22 481522 1
BLL 35 1617854 -7
SWKS 32 457924 -1
DLR 16 175456 -2

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $683 million. That figure was $81 million in SKM’s case. Ball Corporation (NYSE:BLL) is the most popular stock in this table. On the other hand Digital Realty Trust, Inc. (NYSE:DLR) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks SK Telecom Co., Ltd. (ADR) (NYSE:SKM) is even less popular than DLR. 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.

Disclosure: none

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