Youku Tudou Inc (YOKU) Tumbles 10%: Is It A Good Stock To Buy?

Hedge fund activity in Youku Tudou Inc (ADR) (NYSE:YOKU)

There were still believers in the company, chief of which was Kerr Neilson‘s Platinum Asset Management, which had the biggest position in Youku Tudou Inc (ADR) (NYSE:YOKU) to end the first quarter, worth close to $152.9 million from 12.23 million shares. The second-most bullish hedge fund is Hillhouse Capital Management, managed by Lei Zhang, which held a $78.1 million position of 6.25 million shares, which made up 1.4% of its 13F portfolio. Some other members of the smart money with similar optimism encompass David Greenspan’s Slate Path Capital, William B. Gray’s Orbis Investment Management, and Scott Sinclair and Laurence Chang’s Cascabel Management.

Suffice to say, there were hedge funds which sold considerable stakes in Youku Tudou Inc (ADR) (NYSE:YOKU) during the quarter as well. It’s worth mentioning that Bain Capital‘s Brookside Capital dumped the largest investment out of the 700 funds monitored by Insider Monkey, totaling close to $22 million or about 1.24 million shares. Frank Slattery’s fund, Symmetry Peak Management, also said goodbye to its 226,200 call options, about $4 million worth.

With fears, which have not been dispelled, that the Chinese stock market is about to experience a bearish trend in the near future, in addition to fewer hedge funds being long on the stock, we recommend not having a long position on Youku Tudou Inc (ADR) (NYSE:YOKU) right now.

Disclosure: None