Sony Corp (ADR) (SNE): Are Hedge Funds Right About This Stock?

Due to the fact that Sony Corp (ADR) (NYSE:SNE) has witnessed declining sentiment from hedge fund managers, we can see that there exists a select few money managers that decided to sell off their full holdings last quarter. Interestingly, Ken Griffin’s Citadel Investment Group cut the largest position of the “upper crust” of funds followed by Insider Monkey, worth close to $4.8 million in call options, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners was right behind this move, as the fund sold off about $1.1 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Sony Corp (ADR) (NYSE:SNE) but similarly valued. We will take a look at Charles Schwab Corp (NYSE:SCHW), Orange SA (ADR) (NYSE:ORAN), Enbridge Inc (USA) (NYSE:ENB), and China Telecom Corporation Limited (ADR) (NYSE:CHA). This group of stocks’ market valuations are closest to SNE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SCHW 44 2680313 6
ORAN 1 59 -3
ENB 21 286488 6
CHA 6 12861 1

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $745 million. That figure was $327 million in SNE’s case. Charles Schwab Corp (NYSE:SCHW) is the most popular stock in this table. On the other hand Orange SA (ADR) (NYSE:ORAN) is the least popular one with only 1 bullish hedge fund positions. Sony Corp (ADR) (NYSE:SNE) 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 SCHW might be a better candidate to consider taking a long position in.