World-class money managers like Bill Ackman and Barry Rosenstein only invest their wealthy clients’ money after undertaking a rigorous examination of any potential stock. They are particularly successful in this regard when it comes to small-cap stocks, which their peerless research gives them a big information advantage on when it comes to judging their worth. It’s not surprising then that they generate their biggest returns from these stocks and invest more of their money in these stocks on average than other investors. It’s also not surprising then that we pay close attention to these picks ourselves and have built a market-beating investment strategy around them.
Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 5 hedge funds’ portfolios at the end of September. Considering that the shares of Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB) were up 1.04% during the quarter, it might explain the passive hedge fund reaction. However, we will cover the hedge funds holding stake in Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB) at the end of September.
To understand the hedge fund sentiment, we will also compare Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB) to other stocks, including Summit Materials Inc (NYSE:SUM), Chemtura Corp (NYSE:CHMT), and On Assignment, Inc. (NYSE:ASGN) to get a better sense of its popularity.
Follow Grupo Aeroportuario Del Centro N (NASDAQ:OMAB)
Follow Grupo Aeroportuario Del Centro N (NASDAQ:OMAB)
In the eyes of most stock holders, hedge funds are viewed as unimportant, old investment tools of yesteryear. While there are more than 8000 funds with their doors open at the moment, we choose to focus on the elite of this group, approximately 700 funds. These hedge fund managers direct the lion’s share of the hedge fund industry’s total asset base, and by tailing their matchless equity investments, Insider Monkey has unsheathed various investment strategies that have historically beaten Mr. Market. Insider Monkey’s small-cap hedge fund strategy beat the S&P 500 index by 12 percentage points a year for a decade in their back tests.
With all of this in mind, let’s analyze the fresh action regarding Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB).
How are hedge funds trading Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB)?
At the end of the third quarter, a total of 5 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from the previous quarter. With hedgies’ capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).
According to Insider Monkey’s hedge fund and institutional investor database, Renaissance Technologies holds the most valuable position in Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB). Renaissance Technologies has a $6.1 million position in the stock, comprising less than 0.1% of its 13F portfolio. The second largest stake is held by Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which holds a $5.7 million position; less than 0.1% of its 13F portfolio is allocated to the stock. Some other peers that are bullish contain Richard Driehaus’ Driehaus Capital, Israel Englander’s Millennium Management, and Chao Ku’s Nine Chapters Capital Management.
Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.
Let’s now take a look at hedge fund activity in other stocks similar to Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB). These stocks are Summit Materials Inc (NYSE:SUM), Chemtura Corp (NYSE:CHMT), On Assignment, Inc. (NYSE:ASGN), and Demandware Inc (NYSE:DWRE). This group of stocks’ market caps match Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SUM | 30 | 341775 | 9 |
| CHMT | 23 | 436611 | -2 |
| ASGN | 16 | 142618 | -4 |
| DWRE | 12 | 70061 | -3 |
As you can see, these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $248 million. That figure was $19 million in Grupo Aeroportuario del Centro Nort (ADR) (NASDAQ:OMAB)’s case. Summit Materials Inc (NYSE:SUM) is the most popular stock in this table. On the other hand, Demandware Inc (NYSE:DWRE) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks, Grupo Aeroportuario del Centro Nort(ADR) (NASDAQ:OMAB) is even less popular than Demandware Inc (NYSE:DWRE). 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.
