We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article, we look at what those funds think of Cemex SAB de CV (ADR) (NYSE:CX) based on that data.
Is Cemex SAB de CV (ADR) (NYSE:CX) the right pick for your portfolio? The best stock pickers are getting less optimistic. The number of bullish hedge fund bets were cut by 3 recently. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Snap-on Incorporated (NYSE:SNA), Voya Financial Inc (NYSE:VOYA), and Alkermes Plc (NASDAQ:ALKS) to gather more data points.
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If you’d ask most investors, hedge funds are viewed as worthless, old financial tools of the past. While there are greater than 8000 funds trading at the moment, We hone in on the leaders of this club, about 700 funds. These investment experts direct most of the hedge fund industry’s total asset base, and by observing their matchless stock picks, Insider Monkey has unsheathed many investment strategies that have historically defeated Mr. Market. Insider Monkey’s small-cap hedge fund strategy defeated the S&P 500 index by 12 percentage points annually for a decade in their back tests.
With all of this in mind, let’s analyze the new action regarding Cemex SAB de CV (ADR) (NYSE:CX).
Hedge fund activity in Cemex SAB de CV (ADR) (NYSE:CX)
At Q3’s end, a total of 18 of the hedge funds tracked by Insider Monkey were long this stock, a change of -14% from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Oaktree Capital Management, managed by Howard Marks, holds the number one position in Cemex SAB de CV (ADR) (NYSE:CX). Oaktree Capital Management has an $46.3 million position in the stock, comprising 0.6% of its 13F portfolio. On Oaktree Capital Management’s heels is Fisher Asset Management, managed by Ken Fisher, which holds an $38 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Other professional money managers with similar optimism contain Cliff Asness’ AQR Capital Management, William Harnisch’s Peconic Partners LLC and David Kowitz and Sheldon Kasowitz’s Indus Capital.
Seeing as Cemex SAB de CV (ADR) (NYSE:CX) has witnessed a declination in interest from the entirety of the hedge funds we track, we can see that there is a sect of fund managers who were dropping their entire stakes last quarter. It’s worth mentioning that Israel Englander’s Millennium Management dumped the largest stake of all the hedgies followed by Insider Monkey, worth about $34.9 million in stock, and David Halpert’s Prince Street Capital Management was right behind this move, as the fund sold off about $34.2 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 3 funds last quarter.
Let’s also examine hedge fund activity in other stocks similar to Cemex SAB de CV (ADR) (NYSE:CX). We will take a look at Snap-on Incorporated (NYSE:SNA), Voya Financial Inc (NYSE:VOYA), Alkermes Plc (NASDAQ:ALKS), and Shaw Communications Inc (USA) (NYSE:SJR). This group of stocks’ market valuations match CX’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SNA | 31 | 585872 | 6 |
| VOYA | 35 | 1097599 | -5 |
| ALKS | 22 | 523173 | -3 |
| SJR | 15 | 150967 | 3 |
As you can see these stocks had an average of 25.75 hedge funds with bullish positions and the average amount invested in these stocks was $589 million. That figure was $186 million in CX’s case. Voya Financial Inc (NYSE:VOYA) is the most popular stock in this table. On the other hand Shaw Communications Inc (USA) (NYSE:SJR) is the least popular one with only 15 bullish hedge fund positions. Cemex SAB de CV (ADR) (NYSE:CX) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VOYA might be a better candidate to consider a long position.
