Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

What’s Driving The Declines In These Stocks on Monday?

U.S. stocks are down substantially on Monday trading, trailing European stocks, driven by concerns following the U.K.’s vote to leave the E.U. Also tumbling big-time are oil prices, the British pound, financial stocks and U.S. Treasury Yields.

Among the individual stocks posting large declines today are BT Group plc (ADR) (NYSE:BT), Vodafone Group Plc (ADR) (NASDAQ:VOD), Prudential Public Limited Company (ADR) (NYSE:PUK), Carnival Corp (NYSE:CCL) and Royal Caribbean Cruises Ltd (NYSE:RCL). So, let’s take a look into the events behind the moves of these stocks, and see what the funds in our database think about the companies in question.

At Insider Monkey, we track around 770 hedge funds and institutional investors. Through extensive backtests, we have determined that imitating some of the stocks that these investors are collectively bullish on can help retail investors generate double digits of alpha per year. The key is to focus on the small-cap picks of these funds, which are usually less followed by the broader market and allow for larger price inefficiencies (see more details about our small-cap strategy).


BT Group Continues To Tumble On Brexit

Let’s start with BT Group plc (ADR) (NYSE:BT), which has lost over 6% during Monday intraday trading. The London-based communications services company will likely feel the impact of the Brexit, as it derives most of its revenue from the U.K. Nonetheless, it should be noted that its global services division will contribute with a larger chunk of sales, as foreign currencies will be worth more than they used to versus the Pound. Between Friday and Monday alone, shares of BT Group plummeted more than 22.75%. As of the end of the first quarter of 2016, BT Group plc (ADR) (NYSE:BT) counted 11 hedge funds in our database long the stock, almost double the number of supporters it had in the previous quarter. The largest institutional investor of record was Jim Simons’ Renaissance Technologies, which last disclosed ownership of 3.87 million shares, valued at more than $124 million on March 31.

Follow B T Group Plc (NYSE:BT)
Trade (NYSE:BT) Now!

Vodafone Also Suffers From Brexit

Next up is Vodafone Group Plc (ADR) (NASDAQ:VOD), another UK-based communications company that felt the full weight of the Brexit, losing 6.2% on Monday, even though the firm is transitioning to the Euro seeking to reduce currency volatility.  Among the funds that we track, 21 held long stake in Vodafone Group Plc (ADR) (NASDAQ:VOD) at the end of March. Once again, Renaissance Technologies was a large shareholder, with almost 2 million shares, trailing Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, with 5.09 million shares.

Follow Vodafone Group Plc New (NASDAQ:VOD)
Trade (NASDAQ:VOD) Now!

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.