This is How Elite Investors Traded Charles Schwab Corp (SCHW) in Q3

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Now, specific money managers have been driving this bullishness. OZ Management, managed by Daniel S. Och, established the most outsized position in Charles Schwab Corp (NYSE:SCHW). OZ Management had a $172.8 million position of call options underlying SCHW shares at the end of the quarter. Rob Citrone’s Discovery Capital Management also made a $94.2 million investment in the stock during the quarter. The other funds with new positions in the stock are Renaissance Technologies, Brian Ashford-Russell and Tim Woolley’s Polar Capital, and Peter Muller’s PDT Partners.

Let’s go over hedge fund activity in other stocks similar to Charles Schwab Corp (NYSE:SCHW). These stocks are Liberty Global Inc. (NASDAQ:LBTYA), The Blackstone Group L.P. (NYSE:BX), Automatic Data Processing (NASDAQ:ADP), and American Tower Corp (NYSE:AMT). All of these stocks’ market caps are similar to SCHW’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LBTYA 64 2185240 -6
BX 34 406116 0
ADP 32 957220 -10
AMT 42 2352373 3

As you can see these stocks had an average of 43 hedge funds with bullish positions and the average amount invested in these stocks was $1.48 billion. That figure was $3.10 billion in SCHW’s case. Liberty Global Inc. (NASDAQ:LBTYA) is the most popular stock in this table. On the other hand Automatic Data Processing (NASDAQ:ADP) is the least popular one with only 32 bullish hedge fund positions. Charles Schwab Corp (NYSE:SCHW) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LBTYA might be a better candidate to consider a long position in.

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