Hedge funds and other investment firms that we track manage billions of dollars of their wealthy clients’ money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth depends on it. Regardless of the various methods used by successful investors like David Tepper and Dan Loeb, the resources they expend are second-to-none. This is especially valuable when it comes to small-cap stocks, which is where they generate their strongest outperformance, as their resources give them a huge edge when it comes to studying these stocks compared to the average investor, which is why we intently follow their activity in the small-cap space.
Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR) has experienced an increase in hedge fund sentiment of late. There were 8 hedge funds in our database with ASR holdings at the end of the previous quarter. At the end of this article we will also compare ASR to other stocks including Guidewire Software Inc (NYSE:GWRE), Ubiquiti Networks Inc (NASDAQ:UBNT), and DCT Industrial Trust Inc. (NYSE:DCT) to get a better sense of its popularity.
Follow Grupo Aeroportuario Del Sur S A (NYSE:ASR)
Follow Grupo Aeroportuario Del Sur S A (NYSE:ASR)
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
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With all of this in mind, let’s analyze the recent action encompassing Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR).
What does the smart money think about Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR)?
At Q3’s end, a total of 9 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 13% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in ASR over the last 5 quarters. With hedge funds’ capital changing hands, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, Renaissance Technologies, one of the biggest hedge funds in the world, has the largest position in Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR), worth close to $16.2 million, corresponding to less than 0.1%% of its total 13F portfolio. Coming in second is Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, which holds a $11.6 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining peers that hold long positions encompass Michael Moriarty’s Teewinot Capital Advisers, Cliff Asness’s AQR Capital Management and Israel Englander’s Millennium Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.
Consequently, some big names have jumped into Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR) headfirst. Citadel Investment Group, led by Ken Griffin, assembled the biggest position in Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR). Citadel Investment Group had $0.4 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also made a $0.3 million investment in the stock during the quarter. The only other fund with a new position in the stock is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.
Let’s now review hedge fund activity in other stocks similar to Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR). We will take a look at Guidewire Software Inc (NYSE:GWRE), Ubiquiti Networks Inc (NASDAQ:UBNT), DCT Industrial Trust Inc. (NYSE:DCT), and IPG Photonics Corporation (NASDAQ:IPGP). This group of stocks’ market caps are similar to ASR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GWRE | 22 | 118946 | 5 |
| UBNT | 15 | 272438 | 1 |
| DCT | 9 | 113662 | -3 |
| IPGP | 16 | 143200 | -4 |
As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $162 million. That figure was $38 million in ASR’s case. Guidewire Software Inc (NYSE:GWRE) is the most popular stock in this table. On the other hand DCT Industrial Trust Inc. (NYSE:DCT) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Grupo Aeroportuario del Sureste (ADR) (NYSE:ASR) is even less popular than DCT. 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.
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