Companhia Brasileira de Distrib. (ADR) (NYSE:CBD) was in 9 hedge funds’ portfolio at the end of December. CBD has seen an increase in hedge fund sentiment of late. There were 8 hedge funds in our database with CBD positions at the end of the previous quarter.
In today’s marketplace, there are dozens of metrics market participants can use to analyze publicly traded companies. A couple of the most useful are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite money managers can outclass their index-focused peers by a healthy margin (see just how much).
Equally as key, optimistic insider trading sentiment is a second way to break down the marketplace. As the old adage goes: there are many reasons for a corporate insider to get rid of shares of his or her company, but only one, very clear reason why they would behave bullishly. Plenty of empirical studies have demonstrated the market-beating potential of this method if piggybackers know where to look (learn more here).
Keeping this in mind, we’re going to take a gander at the key action surrounding Companhia Brasileira de Distrib. (ADR) (NYSE:CBD).
How have hedgies been trading Companhia Brasileira de Distrib. (ADR) (NYSE:CBD)?
At the end of the fourth quarter, a total of 9 of the hedge funds we track held long positions in this stock, a change of 13% from the third quarter. With hedge funds’ sentiment swirling, there exists a few notable hedge fund managers who were boosting their holdings meaningfully.
When looking at the hedgies we track, Standard Pacific Capital, managed by Douglas Dillard Jr. and Raj D. Venkatesan, holds the largest position in Companhia Brasileira de Distrib. (ADR) (NYSE:CBD). Standard Pacific Capital has a $29 million position in the stock, comprising 4.3% of its 13F portfolio. On Standard Pacific Capital’s heels is AQR Capital Management, managed by Cliff Asness, which held a $22 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedgies that hold long positions include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Ken Fisher’s Fisher Asset Management and Howard Marks’s Oaktree Capital Management.
With a general bullishness amongst the heavyweights, specific money managers were breaking ground themselves. Sigma Capital Management, managed by SAC Subsidiary, initiated the biggest position in Companhia Brasileira de Distrib. (ADR) (NYSE:CBD). Sigma Capital Management had 5.5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.2 million investment in the stock during the quarter. The only other fund with a new position in the stock is Steven Cohen’s SAC Capital Advisors.
How are insiders trading Companhia Brasileira de Distrib. (ADR) (NYSE:CBD)?
Bullish insider trading is most useful when the company in question has experienced transactions within the past 180 days. Over the latest six-month time frame, Companhia Brasileira de Distrib. (ADR) (NYSE:CBD) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let’s check out hedge fund and insider activity in other stocks similar to Companhia Brasileira de Distrib. (ADR) (NYSE:CBD). These stocks are Casey’s General Stores, Inc. (NASDAQ:CASY), Delhaize Group (ADR) (NYSE:DEG), Safeway Inc. (NYSE:SWY), The Kroger Co. (NYSE:KR), and Whole Foods Market, Inc. (NASDAQ:WFM). This group of stocks are the members of the grocery stores industry and their market caps match CBD’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Casey’s General Stores, Inc. (NASDAQ:CASY) | 6 | 0 | 3 |
| Delhaize Group (ADR) (NYSE:DEG) | 6 | 0 | 0 |
| Safeway Inc. (NYSE:SWY) | 19 | 0 | 2 |
| The Kroger Co. (NYSE:KR) | 19 | 0 | 16 |
| Whole Foods Market, Inc. (NASDAQ:WFM) | 32 | 1 | 14 |
With the returns demonstrated by our strategies, retail investors must always watch hedge fund and insider trading sentiment, and Companhia Brasileira de Distrib. (ADR) (NYSE:CBD) shareholders fit into this picture quite nicely.
