Smart Money Not Being Drawn to ICICI Bank Ltd (ADR) (IBN)

As industry-wide interest jumped, key hedge funds were leading the bulls’ herd. Millennium Management, managed by Israel Englander, established the most valuable position in ICICI Bank Ltd (ADR) (NYSE:IBN). Millennium Management had $1.2 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Matthew Tewksbury’s Stevens Capital Management and Louis Navellier’s Navellier & Associates.

Let’s now take a look at hedge fund activity in other stocks similar to ICICI Bank Ltd (ADR) (NYSE:IBN). We will take a look at Credit Suisse Group AG (ADR) (NYSE:CS), Newmont Mining Corp (NYSE:NEM), Illumina, Inc. (NASDAQ:ILMN), and Wisconsin Energy Corporation (NYSE:WEC). This group of stocks’ market caps are similar to IBN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CS 13 122876 0
NEM 38 888003 -1
ILMN 28 433053 0
WEC 20 101872 7

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $386 million. That figure was $413 million in IBN’s case. Newmont Mining Corp (NYSE:NEM) is the most popular stock in this table. On the other hand Credit Suisse Group AG (ADR) (NYSE:CS) is the least popular one with only 13 bullish hedge fund positions. ICICI Bank Ltd (ADR) (NYSE:IBN) 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 NEM might be a better candidate to consider a long position in.

Disclosure: None