T-Mobile a Hedge Fund Favorite – BofA

By Sam Boughedda

A BofA analyst told investors in a note Friday that T-Mobile US Inc (NASDAQ:) shares are a hedge fund favorite, but funds that are long-only have a way to go.

The analyst explained that their August fund manager positioning data revealed hedge fund ownership of telecom stocks was more volatile than usual during the month, with positioning changing by an average of 1.4x, primarily due to trading volatility. However, long-only fund positioning changes remained muted.

“Our active manager data shows that hedge funds are the most overweight TMUS at 6.2x,” wrote the analyst. “Hedge funds were 8.1x overweight TMUS in June, a 3.0x increase from May and the largest overweight positioning to-date, but clearly trimmed as they awaited news on the buyback following strong .”

“The fact that our data shows only a market-weighting among LOs in TMUS often comes as a surprise to our LO client base who generally consider it a ‘crowded long’ and as such are hesitant to go overweight,” he concluded.

At the time of writing, T-Mobile shares are down more than 1%.

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