Insider Monkey has processed numerous 13F filings of hedge funds and famous investors to create an extensive database of hedge fund holdings. The 13F filings show the hedge funds and investors’ positions as of the end of the third quarter. You can find write-ups about an individual hedge fund’s trades on several financial news websites. However, in this article we will take a look at their collective moves and analyze what the smart money thinks of Companhia de Saneamento Basico (ADR) (NYSE:SBS) based on that data.
Companhia de Saneamento Basico (ADR) (NYSE:SBS) shares didn’t see a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 16 hedge funds’ portfolios at the end of September, same as at the end of June. At the end of this article we will also compare SBS to other stocks including Trimble Navigation Limited (NASDAQ:TRMB), Kilroy Realty Corp (NYSE:KRC), and iShares MSCI ACWI Index Fund (NASDAQ:ACWI) to get a better sense of its popularity.
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How have hedgies been trading Companhia de Saneamento Basico (ADR) (NYSE:SBS)?
Heading into the fourth quarter of 2016, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from the previous quarter. By comparison, 11 hedge funds held shares or bullish call options in SBS heading into this year, so hedge fund sentiment has greatly improved. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, AQR Capital Management, led by Cliff Asness, holds the most valuable position in Companhia de Saneamento Basico (ADR) (NYSE:SBS). AQR Capital Management has a $60.8 million position in the stock. The second most bullish fund manager is Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, holding a $58.8 million position. Remaining peers that hold long positions include Ian Simm’s Impax Asset Management, Jim Simons’ Renaissance Technologies, and Israel Englander’s Millennium Management. We should note that Impax Asset Management is 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.
Since Companhia de Saneamento Basico (ADR) (NYSE:SBS) has witnessed a decline in interest from hedge fund managers, it’s safe to say that there were a few hedgies that decided to sell off their entire stakes heading into Q4. It’s worth mentioning that Paul Singer’s Elliott Management said goodbye to the largest stake of the “upper crust” of funds monitored by Insider Monkey, valued at an estimated $72.6 million in stock, and Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners was right behind this move, as the fund dumped about $1.6 million worth of shares.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Companhia de Saneamento Basico (ADR) (NYSE:SBS) but similarly valued. These stocks are Trimble Navigation Limited (NASDAQ:TRMB), Kilroy Realty Corp (NYSE:KRC), iShares MSCI ACWI Index Fund (NASDAQ:ACWI), and TransUnion (NYSE:TRU). This group of stocks’ market valuations are similar to SBS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| TRMB | 19 | 531380 | 1 |
| KRC | 13 | 213436 | 4 |
| ACWI | 9 | 169259 | 3 |
| TRU | 28 | 533594 | 7 |
As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $362 million. That figure was $206 million in SBS’s case. TransUnion (NYSE:TRU) is the most popular stock in this table. On the other hand iShares MSCI ACWI Index Fund (NASDAQ:ACWI) is the least popular one with only 9 bullish hedge fund positions. Companhia de Saneamento Basico (ADR) (NYSE:SBS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TRU might be a better candidate to consider taking a long position in.
Disclosure: None
