Why 58.com Inc (ADR) (WUBA)’s Stock Is Trending on Wednesday?

Consequently, some big names have been driving this bullishness. Jericho Capital Asset Management, managed by Josh Resnick, assembled the largest position in 58.com Inc (ADR) (NYSE:WUBA). Jericho Capital Asset Management had $21.2 million invested in the company at the end of the first quarter. Ken Griffin’s Citadel Investment Group also initiated a $4.5 million position during the quarter. The other funds with brand new WUBA positions are Louis Bacon’s Moore Global Investments, Simon Sadler’s Segantii Capital, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as 58.com Inc (ADR) (NYSE:WUBA) but similarly valued. We will take a look at AGL Resources Inc. (NYSE:GAS), Enbridge Energy Partners, L.P. (NYSE:EEP), Shire PLC (ADR) (NASDAQ:SHPG), and Western Gas Equity Partners LP (NYSE:WGP). This group of stocks’ market valuations resemble WUBA’s market valuation.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $787 million. That figure was $736 million in WUBA’s case. Shire PLC (ADR) (NASDAQ:SHPG) is the most popular stock in this table. On the other hand Enbridge Energy Partners, L.P. (NYSE:EEP) is the least popular one with only 7 bullish hedge fund positions. 58.com Inc (ADR) (NYSE:WUBA) 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 SHPG might be a better candidate to consider a long position.

Disclosure: None