It’s a little-known fact that stock performance is not evenly distributed (i.e. you don’t have a 50/50 chance of picking a market-beating stock). In fact, despite the S&P 500 gaining about 5.2% between November 1, 2014 and October 30, 2015, less than 49% of the stocks in the index beat the market during that time. In contrast, the 30 stocks from the index which were the most popular among the investors that we track returned 9.5% during that time and 63% of them beat the market. This shows that while hedge funds get a lot of flak from the mainstream media for their performance, it can be rewarding to follow their moves using the right sets of data. Even then, there is never a fool proof strategy to generating returns, as even the collective wisdom of top hedge funds gets it wrong some times, as in the case of some of their top picks from the index like Micron and Anadarko. The data though, shows that following the collective wisdom of select hedge funds can be a very wise move overall.
Hedge fund interest in Prudential Public Limited Company (ADR) (NYSE:PUK) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare PUK to other stocks including Honda Motor Co Ltd (ADR) (NYSE:HMC), Ford Motor Company (NYSE:F), and BT Group plc (ADR) (NYSE:BT) to get a better sense of its popularity.
With all of this in mind, we’re going to check out the recent action encompassing Prudential Public Limited Company (ADR) (NYSE:PUK).
How are hedge funds trading Prudential Public Limited Company (ADR) (NYSE:PUK)?
At Q3’s end, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the second quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Fisher Asset Management, managed by Ken Fisher, holds the most valuable position in Prudential Public Limited Company (ADR) (NYSE:PUK). Fisher Asset Management has a $114.9 million position in the stock, comprising 0.2% of its 13F portfolio. The second most bullish fund manager is Renaissance Technologies, managed by Jim Simons, which holds a $5.7 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other members of the smart money with similar optimism comprise Robert B. Gillam’s McKinley Capital Management, Ken Griffin’s Citadel Investment Group and Israel Englander’s Millennium Management.