In this article we will take a look at whether hedge funds think Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from investment bankers and industry insiders. Sure they sometimes fail miserably, but their consensus stock picks historically outperformed the market after adjusting for known risk factors.
Is Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) an outstanding investment today? The best stock pickers are reducing their bets on the stock. The number of bullish hedge fund bets retreated by 2 lately. Our calculations also showed that OMAB isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
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. 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 44 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 36% through May 18th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Jim Simons Founder of Renaissance Technologies
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we believe electric vehicles and energy storage are set to become giant markets, and we want to take advantage of the declining lithium prices amid the COVID-19 pandemic. So we are checking out investment opportunities like this one. We interview hedge fund managers and ask them about their best ideas. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. Our best call in 2020 was shorting the market when the S&P 500 was trading at 3150 after realizing the coronavirus pandemic’s significance before most investors. Keeping this in mind let’s take a gander at the latest hedge fund action regarding Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB).
What have hedge funds been doing with Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB)?
At the end of the first quarter, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -33% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards OMAB over the last 18 quarters. So, let’s review 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, Renaissance Technologies, holds the largest position in Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB). Renaissance Technologies has a $24.2 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies’s heels is Arrowstreet Capital, managed by Peter Rathjens, Bruce Clarke and John Campbell, which holds a $3.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Some other professional money managers that are bullish consist of Paul Marshall and Ian Wace’s Marshall Wace LLP, Israel Englander’s Millennium Management and . In terms of the portfolio weights assigned to each position Renaissance Technologies allocated the biggest weight to Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB), around 0.02% of its 13F portfolio. Marshall Wace LLP is also relatively very bullish on the stock, earmarking 0.02 percent of its 13F equity portfolio to OMAB.
Due to the fact that Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) has witnessed falling interest from the aggregate hedge fund industry, it’s safe to say that there is a sect of funds that slashed their positions entirely by the end of the third quarter. At the top of the heap, Richard Driehaus’s Driehaus Capital said goodbye to the largest position of the “upper crust” of funds followed by Insider Monkey, comprising close to $1.1 million in stock. Ronald Hua’s fund, Qtron Investments, also cut its stock, about $0.7 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 2 funds by the end of the third quarter.
Let’s go over hedge fund activity in other stocks similar to Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB). We will take a look at Matson Inc. (NYSE:MATX), Fresh Del Monte Produce Inc (NYSE:FDP), SkyWest, Inc. (NASDAQ:SKYW), and Herman Miller, Inc. (NASDAQ:MLHR). This group of stocks’ market caps resemble OMAB’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MATX | 3 | 6188 | -7 |
| FDP | 6 | 28077 | -5 |
| SKYW | 18 | 83716 | 3 |
| MLHR | 22 | 111991 | -2 |
| Average | 12.25 | 57493 | -2.75 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $57 million. That figure was $30 million in OMAB’s case. Herman Miller, Inc. (NASDAQ:MLHR) is the most popular stock in this table. On the other hand Matson Inc. (NYSE:MATX) is the least popular one with only 3 bullish hedge fund positions. Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is not the least popular stock in this group but hedge fund interest is still below average. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 8.3% in 2020 through the end of May and still beat the market by 13.2 percentage points. A small number of hedge funds were also right about betting on OMAB as the stock returned 30.8% during the second quarter and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
