The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the second quarter, which unveil their equity positions as of June 30th. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Cemex SAB de CV (NYSE:CX).
Cemex SAB de CV (NYSE:CX) investors should pay attention to a decrease in enthusiasm from smart money in recent months. Cemex SAB de CV (NYSE:CX) was in 23 hedge funds’ portfolios at the end of June. The all time high for this statistic is 24. There were 24 hedge funds in our database with CX holdings at the end of March. Our calculations also showed that CX isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
Howard Marks of Oaktree Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now we’re going to review the key hedge fund action surrounding Cemex SAB de CV (NYSE:CX).
Do Hedge Funds Think CX Is A Good Stock To Buy Now?
At the end of June, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CX over the last 24 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were boosting their stakes significantly (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Oaktree Capital Management, managed by Howard Marks, holds the largest position in Cemex SAB de CV (NYSE:CX). Oaktree Capital Management has a $200.5 million position in the stock, comprising 2.7% of its 13F portfolio. The second most bullish fund manager is Hosking Partners, managed by Jeremy Hosking, which holds a $57.6 million position; the fund has 1.3% of its 13F portfolio invested in the stock. Some other peers that are bullish encompass Teresa Barger’s Cartica Management, Jos Shaver’s Electron Capital Partners and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital. In terms of the portfolio weights assigned to each position Cartica Management allocated the biggest weight to Cemex SAB de CV (NYSE:CX), around 9.74% of its 13F portfolio. Prince Street Capital Management is also relatively very bullish on the stock, designating 7.37 percent of its 13F equity portfolio to CX.
Because Cemex SAB de CV (NYSE:CX) has faced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of money managers who sold off their full holdings last quarter. Interestingly, Paul Marshall and Ian Wace’s Marshall Wace LLP dumped the biggest investment of all the hedgies followed by Insider Monkey, totaling about $7.9 million in stock. Warren Lammert’s fund, Granite Point Capital, also cut its stock, about $2.6 million worth. These bearish behaviors are interesting, as total hedge fund interest fell by 1 funds last quarter.
Let’s check out hedge fund activity in other stocks similar to Cemex SAB de CV (NYSE:CX). We will take a look at Cna Financial Corporation (NYSE:CNA), Sibanye Stillwater Limited (NYSE:SBSW), Invesco Ltd. (NYSE:IVZ), iQIYI, Inc. (NASDAQ:IQ), Five9 Inc (NASDAQ:FIVN), CRISPR Therapeutics AG (NASDAQ:CRSP), and Teck Resources Ltd (NYSE:TECK). This group of stocks’ market valuations are closest to CX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CNA | 13 | 65189 | -6 |
| SBSW | 15 | 257887 | -1 |
| IVZ | 40 | 1343997 | 8 |
| IQ | 27 | 1096859 | -13 |
| FIVN | 45 | 2150801 | 0 |
| CRSP | 34 | 1761605 | 7 |
| TECK | 40 | 1277433 | 10 |
| Average | 30.6 | 1136253 | 0.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 30.6 hedge funds with bullish positions and the average amount invested in these stocks was $1136 million. That figure was $602 million in CX’s case. Five9 Inc (NASDAQ:FIVN) is the most popular stock in this table. On the other hand Cna Financial Corporation (NYSE:CNA) is the least popular one with only 13 bullish hedge fund positions. Cemex SAB de CV (NYSE:CX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CX is 48.4. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 24% in 2021 through October 22nd and surpassed the market again by 1.6 percentage points. Unfortunately CX wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); CX investors were disappointed as the stock returned -20.1% since the end of June (through 10/22) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.
Follow Cemex S A B De C V (NYSE:CX)
Follow Cemex S A B De C V (NYSE:CX)
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Disclosure: None. This article was originally published at Insider Monkey.
