Is Banco Macro SA (ADR) (NYSE:BMA) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also have numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments. More recently the top 30 mid-cap stocks (market caps between $1 billion and $10 billion) among hedge funds delivered an average return of 18% during the last four quarters (S&P 500 Index funds returned only 7.6% during the same period).
Banco Macro SA (ADR) (NYSE:BMA) was in 18 hedge funds’ portfolios at the end of the third quarter of 2016. BMA has experienced an increase in hedge fund sentiment recently. There were 16 hedge funds in our database with BMA holdings at the end of the previous quarter. At the end of this article we will also compare BMA to other stocks including MSC Industrial Direct Co Inc (NYSE:MSM), DCT Industrial Trust Inc. (NYSE:DCT), and Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU) to get a better sense of its popularity.
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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 latest action regarding Banco Macro SA (ADR) (NYSE:BMA).
Hedge fund activity in Banco Macro SA (ADR) (NYSE:BMA)
Heading into the fourth quarter of 2016, a total of 18 of the hedge funds tracked by Insider Monkey were bullish on this stock, a gain of 13% from the second quarter of 2016. Below, you can check out the change in hedge fund sentiment towards BMA over the last 5 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Zach Schreiber’s Point State Capital has the number one position in Banco Macro SA (ADR) (NYSE:BMA), worth close to $48.1 million. Sitting at the No. 2 spot is Edmond M. Safra’s EMS Capital, holding a $36 million position; 3.6% of its 13F portfolio is allocated to the company. Remaining peers that are bullish encompass Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Crispin Odey’s Odey Asset Management Group and Bruce Kovner’s Caxton Associates LP. 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.
As one would reasonably expect, key hedge funds were breaking ground themselves. David Halpert’s Prince Street Capital Management created the biggest position in Banco Macro SA (ADR) (NYSE:BMA). Prince Street Capital Management had $3 million invested in the company at the end of the quarter. Brian Taylor’s Pine River Capital Management also made a $2.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Jacob Rothschild’s RIT Capital Partners, Matthew Tewksbury’s Stevens Capital Management, and John Horseman’s Horseman Capital Management.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Banco Macro SA (ADR) (NYSE:BMA) but similarly valued. We will take a look at MSC Industrial Direct Co Inc (NYSE:MSM), DCT Industrial Trust Inc. (NYSE:DCT), Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU), and PTC Inc (NASDAQ:PTC). This group of stocks’ market values are closest to BMA’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MSM | 21 | 555966 | -5 |
| DCT | 9 | 113662 | -3 |
| CCU | 10 | 52657 | 0 |
| PTC | 30 | 987607 | -2 |
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 $427 million. That figure was $149 million in BMA’s case. PTC Inc (NASDAQ:PTC) 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. Banco Macro SA (ADR) (NYSE:BMA) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PTC might be a better candidate to consider taking a long position in.
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Disclosure: None
