The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors endured a torrid quarter, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA).
Hedge fund interest in Banco Bilbao Vizcaya Argentaria SA (ADR) shares was flat at the end of last quarter. This is usually a negative indicator. At the end of this article we will also compare BBVA to other stocks including Metlife Inc (NYSE:MET), National Grid plc (ADR) (NYSE:NGG), and Sumitomo Mitsui Financial Grp, Inc. (ADR) (NYSE:SMFG) to get a better sense of its popularity.
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In the eyes of most investors, hedge funds are perceived as unimportant, outdated investment tools of the past. While there are more than 8000 funds trading at the moment, Our experts hone in on the upper echelon of this club, around 700 funds. It is estimated that this group of investors control bulk of all hedge funds’ total asset base, and by keeping an eye on their first-class picks, Insider Monkey has brought to light many investment strategies that have historically defeated the market. Insider Monkey’s small-cap hedge fund strategy outpaced the S&P 500 index by 12 percentage points annually for a decade in their back tests.
Keeping this in mind, we’re going to analyze the recent action encompassing Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA).
How have hedgies been trading Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA)?
Heading into Q4, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the second quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Bill Miller’s Legg Mason Capital Management has the number one position in Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA), worth close to $1.6 million, amounting to less than 0.1% of its total 13F portfolio. The second largest stake is held by Dreman Value Management, managed by David Dreman, which holds a $1.1 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Remaining hedge funds and institutional investors that hold long positions consist of Ken Griffin’s Citadel Investment Group, and Matthew Hulsizer’s PEAK6 Capital Management.
Interestingly, Robert Raiff’s Raiff Partners sold off the largest position of the 700 funds tracked by Insider Monkey, comprising close to $0.9 million in stock. Peter Rathjens, Bruce Clarke and John Campbell’s fund, Arrowstreet Capital, also cut its stock, about $0.3 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now take a look at hedge fund activity in other stocks similar to Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA). We will take a look at Metlife Inc (NYSE:MET), National Grid plc (ADR) (NYSE:NGG), Sumitomo Mitsui Financial Grp, Inc. (ADR) (NYSE:SMFG), and Texas Instruments Incorporated (NASDAQ:TXN). All of these stocks’ market caps resemble BBVA’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MET | 47 | 1723169 | -8 |
| NGG | 6 | 165920 | 1 |
| SMFG | 14 | 35784 | -3 |
| TXN | 35 | 710030 | 2 |
As you can see these stocks had an average of 25.5 hedge funds with bullish positions and the average amount invested in these stocks was $659 million. That figure was $4 million in BBVA’s case. Metlife Inc (NYSE:MET) is the most popular stock in this table. On the other hand National Grid plc (ADR) (NYSE:NGG) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) is even less popular than NGG. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
