Do Hedge Funds Love LATAM Airlines Group SA (ADR) (LFL)?

Consequently, some big names were leading the bulls’ herd. Millennium Management, one of the 10 largest hedge funds in the world, created the largest position in LATAM Airlines Group SA (ADR) (NYSE:LFL). Millennium Management had $6.5 million invested in the company at the end of the quarter. D. E. Shaw’s D E Shaw also initiated a $1.7 million position during the quarter. The only other fund with a brand new LFL position is Mike Vranos’s Ellington.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as LATAM Airlines Group SA (ADR) (NYSE:LFL) but similarly valued. These stocks are Endurance Specialty Holdings Ltd. (NYSE:ENH), Eaton Vance Corp (NYSE:EV), CONSOL Energy Inc. (NYSE:CNX), and CSRA Inc (MYSE:CSRA). This group of stocks’ market valuations match LFL’s market valuation.

As you can see these stocks had an average of 22.5 hedge funds with bullish positions and the average amount invested in these stocks was $655 million. That figure was $41 million in LFL’s case. CONSOL Energy Inc. (NYSE:CNX) is the most popular stock in this table. On the other hand Eaton Vance Corp (NYSE:EV) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks LATAM Airlines Group SA (ADR) (NYSE:LFL) is even less popular than EV. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, 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.

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