We hate to say this but, we told you so. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW and predicted a US recession when the S&P 500 Index was trading at the 3150 level. We also told you to short the market and buy long-term Treasury bonds. Our article also called for a total international travel ban. While we were warning you, President Trump minimized the threat and failed to act promptly. As a result of his inaction, we will now experience a deeper recession (see why hell is coming).
In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. We at Insider Monkey have gone over 835 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of December 31st. In this article, we look at what those funds think of Compania de Minas Buenaventura S.A.A. (NYSE:BVN) based on that data.
Compania de Minas Buenaventura S.A.A. (NYSE:BVN) has seen an increase in hedge fund sentiment recently. BVN was in 13 hedge funds’ portfolios at the end of December. There were 8 hedge funds in our database with BVN positions at the end of the previous quarter. Our calculations also showed that BVN isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings and see the video at the end of this article for Q3 rankings).
Today there are dozens of metrics stock market investors have at their disposal to grade stocks. A pair of the less known metrics are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the best picks of the best money managers can outclass the market by a superb margin (see the details here).
Matthew Hulsizer of PEAK6 Capital
We leave no stone unturned when looking for the next great investment idea. For example we recently identified a stock that trades 25% below the net cash on its balance sheet. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences, and go through short-term trade recommendations like this one. We even check out the recommendations of services with hard to believe track records. Our best call in 2020 was shorting the market when S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. With all of this in mind let’s analyze the recent hedge fund action encompassing Compania de Minas Buenaventura S.A.A. (NYSE:BVN).
How have hedgies been trading Compania de Minas Buenaventura S.A.A. (NYSE:BVN)?
At Q4’s end, a total of 13 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 63% from the previous quarter. On the other hand, there were a total of 6 hedge funds with a bullish position in BVN a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to Insider Monkey’s hedge fund database, Richard Oldfield’s Oldfield Partners has the largest position in Compania de Minas Buenaventura S.A.A. (NYSE:BVN), worth close to $81.8 million, amounting to 7.3% of its total 13F portfolio. The second largest stake is held by Millennium Management, managed by Israel Englander, which holds a $29 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Remaining professional money managers that hold long positions encompass Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Eric Sprott’s Sprott Asset Management and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Oldfield Partners allocated the biggest weight to Compania de Minas Buenaventura S.A.A. (NYSE:BVN), around 7.25% of its 13F portfolio. Sprott Asset Management is also relatively very bullish on the stock, setting aside 0.63 percent of its 13F equity portfolio to BVN.
As industrywide interest jumped, some big names have jumped into Compania de Minas Buenaventura S.A.A.(NYSE:BVN) headfirst. Citadel Investment Group, managed by Ken Griffin, established the biggest position in Compania de Minas Buenaventura S.A.A. (NYSE:BVN). Citadel Investment Group had $2.3 million invested in the company at the end of the quarter. Michael Gelband’s ExodusPoint Capital also initiated a $1.2 million position during the quarter. The other funds with new positions in the stock are Donald Sussman’s Paloma Partners, Matthew Hulsizer’s PEAK6 Capital Management, and Minhua Zhang’s Weld Capital Management.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Compania de Minas Buenaventura S.A.A. (NYSE:BVN) but similarly valued. We will take a look at Bank of Hawaii Corporation (NYSE:BOH), Hancock Whitney Corporation (NASDAQ:HWC), UniFirst Corp (NYSE:UNF), and Six Flags Entertainment Corp (NYSE:SIX). This group of stocks’ market caps resemble BVN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| BOH | 16 | 142274 | 2 |
| HWC | 16 | 70660 | -4 |
| UNF | 21 | 159214 | -3 |
| SIX | 38 | 609215 | -3 |
| Average | 22.75 | 245341 | -2 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $245 million. That figure was $141 million in BVN’s case. Six Flags Entertainment Corp (NYSE:SIX) is the most popular stock in this table. On the other hand Bank of Hawaii Corporation (NYSE:BOH) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Compania de Minas Buenaventura S.A.A. (NYSE:BVN) is even less popular than BOH. Hedge funds dodged a bullet by taking a bearish stance towards BVN. Our calculations showed that the top 20 most popular hedge fund stocks returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks lost 17.4% in 2020 through March 25th but managed to beat the market by 5.5 percentage points. Unfortunately BVN wasn’t nearly as popular as these 20 stocks (hedge fund sentiment was very bearish); BVN investors were disappointed as the stock returned -46% during the same time period and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market so far in Q1.
Video: Click the image to watch our video about the top 5 most popular hedge fund stocks.
Disclosure: None. This article was originally published at Insider Monkey.
