Legendary investors such as Leon Cooperman and Seth Klarman earn enormous amounts of money for themselves and their investors by doing in-depth research on small-cap stocks that big brokerage houses don’t publish. Small cap stocks -especially when they are screened well- can generate substantial outperformance versus a boring index fund. That’s why we analyze the activity of those elite funds in these small-cap stocks. In the following paragraphs, we analyze Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) from the perspective of those elite funds.
Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) shareholders have witnessed an increase in activity from the world’s largest hedge funds lately. At the end of this article we will also compare KOF to other stocks including Hess Corp. (NYSE:HES), Mead Johnson Nutrition CO (NYSE:MJN), and Tenaris S.A. (ADR) (NYSE:TS) to get a better sense of its popularity.
Follow Coca Cola Femsa S A B De C V (NYSE:KOF)
Follow Coca Cola Femsa S A B De C V (NYSE:KOF)
Keeping this in mind, we’re going to take a gander at the fresh action encompassing Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF).
How have hedgies been trading Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF)?
At Q3’s end, a total of 11 of the hedge funds tracked by Insider Monkey were bullish in this stock, a change of 38% from the previous quarter. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were increasing their holdings substantially (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Bill & Melinda Gates Foundation Trust, managed by Michael Larson, holds the biggest position in Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF). Bill & Melinda Gates Foundation Trust has a $431.2 million position in the stock, comprising 2.5% of its 13F portfolio. Sitting at the No. 2 spot is Jim Simons of Renaissance Technologies, with a $45.7 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other peers that are bullish comprise Cliff Asness’s AQR Capital Management, Matthew Hulsizer’s PEAK6 Capital Management and Joel Greenblatt’s Gotham Asset Management.
As industrywide interest jumped, specific money managers were leading the bulls’ herd. PEAK6 Capital Management, managed by Matthew Hulsizer, established the most valuable position in Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF). PEAK6 Capital Management had $3.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $1.1 million investment in the stock during the quarter. The only other fund with a brand new KOF position is Andre F. Perold’s HighVista Strategies.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) but similarly valued. These stocks are Hess Corp. (NYSE:HES), Mead Johnson Nutrition CO (NYSE:MJN), Tenaris S.A. (ADR) (NYSE:TS), and W.W. Grainger, Inc. (NYSE:GWW). All of these stocks’ market caps are closest to KOF’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HES | 41 | 1580894 | -2 |
| MJN | 43 | 1632869 | -1 |
| TS | 13 | 104036 | 2 |
| GWW | 18 | 855351 | 2 |
As you can see these stocks had an average of 28.75 hedge funds with bullish positions and the average amount invested in these stocks was $1,043 million.That figure was $493 millions in KOF’s case. Mead Johnson Nutrition CO (NYSE:MJN) is the most popular stock in this table. On the other hand Tenaris S.A. (ADR) (NYSE:TS) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) is even less popular than TS. Considering that hedge funds aren’t fond of this stock, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.
