In this article you are going to find out whether hedge funds think Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It’s not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.
Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) has experienced a decrease in hedge fund interest in recent months. Our calculations also showed that ASR 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.
To the average investor there are a multitude of tools investors put to use to evaluate stocks. A couple of the most under-the-radar tools are hedge fund and insider trading signals. Our experts have shown that, historically, those who follow the best picks of the best fund managers can trounce the broader indices by a superb amount (see the details here).
Ken Griffin of Citadel Investment Group
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, 2020’s unprecedented market conditions provide us with the highest number of trading opportunities in a decade. So we are checking out trades 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. Now let’s check out the new hedge fund action encompassing Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR).
What does smart money think about Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR)?
Heading into the second quarter of 2020, a total of 4 of the hedge funds tracked by Insider Monkey were long this stock, a change of -60% from the previous quarter. By comparison, 8 hedge funds held shares or bullish call options in ASR a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Renaissance Technologies, holds the most valuable position in Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR). Renaissance Technologies has a $26.7 million position in the stock, comprising less than 0.1%% of its 13F portfolio. Coming in second is Millennium Management, led by Israel Englander, holding a $3.5 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Remaining peers that hold long positions encompass Cliff Asness’s AQR Capital Management, Ken Griffin’s Citadel Investment Group and . In terms of the portfolio weights assigned to each position Renaissance Technologies allocated the biggest weight to Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR), around 0.03% of its 13F portfolio. Millennium Management is also relatively very bullish on the stock, earmarking 0.01 percent of its 13F equity portfolio to ASR.
Due to the fact that Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) has experienced a decline in interest from the aggregate hedge fund industry, it’s easy to see that there was a specific group of funds who were dropping their entire stakes last quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dropped the largest position of the “upper crust” of funds watched by Insider Monkey, valued at close to $5.8 million in stock, and Michael Moriarty’s Teewinot Capital Advisers was right behind this move, as the fund cut about $4.7 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 6 funds last quarter.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) but similarly valued. We will take a look at Hanesbrands Inc. (NYSE:HBI), RBC Bearings Incorporated (NASDAQ:ROLL), Physicians Realty Trust (NYSE:DOC), and Nextera Energy Partners LP (NYSE:NEP). All of these stocks’ market caps are closest to ASR’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| HBI | 36 | 364607 | -4 |
| ROLL | 9 | 39699 | -1 |
| DOC | 16 | 133862 | 5 |
| NEP | 21 | 96521 | 4 |
| Average | 20.5 | 158672 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 20.5 hedge funds with bullish positions and the average amount invested in these stocks was $159 million. That figure was $32 million in ASR’s case. Hanesbrands Inc. (NYSE:HBI) is the most popular stock in this table. On the other hand RBC Bearings Incorporated (NASDAQ:ROLL) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) is even less popular than ROLL. Hedge funds dodged a bullet by taking a bearish stance towards ASR. Our calculations showed that the top 10 most popular hedge fund stocks 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 but managed to beat the market by 13.2 percentage points. Unfortunately ASR wasn’t nearly as popular as these 10 stocks (hedge fund sentiment was very bearish); ASR investors were disappointed as the stock returned 10.1% during the second quarter (through the end of May) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market so far in 2020.
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Disclosure: None. This article was originally published at Insider Monkey.
