To the average investor, there are dozens of indicators market participants can use to analyze the equity markets. Some of the most underrated are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the best investment managers can beat the market by a very impressive amount (see just how much).
Just as crucial, optimistic insider trading activity is another way to analyze the marketplace. There are plenty of motivations for an upper level exec to sell shares of his or her company, but only one, very clear reason why they would initiate a purchase. Several academic studies have demonstrated the impressive potential of this tactic if piggybackers understand what to do (learn more here).
Furthermore, it’s important to analyze the recent info about Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF).
Hedge fund activity in Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF)
At Q2’s end, a total of 12 of the hedge funds we track were bullish in this stock, a change of 20% from the first quarter. With hedge funds’ sentiment swirling, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings considerably.
According to our 13F database, Michael Larson’s Bill & Melinda Gates Foundation Trust had the biggest position in Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF), worth close to $871.9 million, comprising 4.9% of its total 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $103.9 million position; the fund has 0.3% of its 13F portfolio invested in the stock. Remaining hedgies with similar optimism include Cliff Asness’s AQR Capital Management, and William Michaelcheck’s Mariner Investment Group.
As industrywide interest increased, particular hedge funds have jumped into Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) headfirst. Bill & Melinda Gates Foundation Trust, managed by Michael Larson, established the largest position in Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF). Bill & Melinda Gates Foundation Trust had 871.9 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $103.9 million position during the quarter. The other funds with new positions in the stock are Cliff Asness’s AQR Capital Management, D. E. Shaw’s D E Shaw, and William Michaelcheck’s Mariner Investment Group.
How are insiders trading Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF)?
Insider buying made by high-level executives is at its handiest when the company in question has experienced transactions within the past half-year. Over the last 180-day time frame, Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
We’ll also take a look at the relationship between both of these indicators in other stocks similar to Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF). These stocks are Monster Beverage Corp (NASDAQ:MNST), PepsiCo, Inc. (NYSE:PEP), Dr Pepper Snapple Group Inc. (NYSE:DPS), Coca-Cola HBC S.A. (ADR) (NYSE:CCH), and Coca-Cola Enterprises Inc (NYSE:CCE). This group of stocks belong to the beverages – soft drinks industry and their market caps are closest to KOF’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Monster Beverage Corp (NASDAQ:MNST) | 31 | 0 | 0 |
| PepsiCo, Inc. (NYSE:PEP) | 46 | 0 | 0 |
| Dr Pepper Snapple Group Inc. (NYSE:DPS) | 22 | 0 | 0 |
| Coca-Cola HBC S.A. (ADR) (NYSE:CCH) | 0 | 0 | |
| Coca-Cola Enterprises Inc (NYSE:CCE) | 31 | 0 | 0 |
Using the returns explained by our strategies, average investors must always keep one eye on hedge fund and insider trading sentiment, and Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) is no exception.
