Fomento Economico Mexicano SAB (ADR) (FMX): Insiders and Hedge Funds Aren’t Crazy About It

In the hedge fund world, Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) bulls are standing pat.

To the average investor, there are dozens of methods shareholders can use to monitor stocks. Some of the most under-the-radar are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite hedge fund managers can trounce their index-focused peers by a superb amount (see just how much).

Equally as key, bullish insider trading activity is a second way to analyze the investments you’re interested in. Just as you’d expect, there are a variety of reasons for an upper level exec to sell shares of his or her company, but just one, very obvious reason why they would behave bullishly. Plenty of academic studies have demonstrated the impressive potential of this method if piggybackers understand what to do (learn more here).

Keeping this in mind, it’s important to examine the newest info about Fomento Economico Mexicano SAB (ADR) (NYSE:FMX).

How are hedge funds trading Fomento Economico Mexicano SAB (ADR) (NYSE:FMX)?

In preparation for the third quarter, a total of 22 of the hedge funds we track were long in this stock, a change of 0% from one quarter earlier. With hedge funds’ capital changing hands, there exists a select group of notable hedge fund managers who were boosting their holdings significantly.

According to our 13F database, Maverick Capital, managed by Lee Ainslie, holds the largest position in Fomento Economico Mexicano SAB (ADR) (NYSE:FMX). Maverick Capital has a $131.1 million position in the stock, comprising 1.8% of its 13F portfolio. The second largest stake is held by Jim Simons of Renaissance Technologies, with a $37.9 million position; the fund has 0.1% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include Christopher R. Hansen’s Valiant Capital, Peter Rathjens Bruce Clarke and John Campbell’s Arrowstreet Capital and Mario Gabelli’s GAMCO Investors.

Due to the fact Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) has faced a fall in interest from the top-tier hedge fund industry, we can see that there was a specific group of funds who sold off their entire stakes last quarter. At the top of the heap, Michael Larson’s Bill & Melinda Gates Foundation Trust said goodbye to the largest position of the “upper crust” of funds we track, totaling about $24.7 million in stock. Israel Englander’s fund, Millennium Management, also sold off its stock, about $7.2 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

How are insiders trading Fomento Economico Mexicano SAB (ADR) (NYSE:FMX)?

Legal insider trading, particularly when it’s bullish, is best served when the primary stock in question has experienced transactions within the past six months. Over the last six-month time frame, Fomento Economico Mexicano SAB (ADR) (NYSE:FMX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also examine the relationship between both of these indicators in other stocks similar to Fomento Economico Mexicano SAB (ADR) (NYSE:FMX). These stocks are Boston Beer Co Inc (NYSE:SAM), Compania Cervecerias Unidas S.A. (ADR) (NYSE:CCU), Molson Coors Brewing Company (NYSE:TAP), Companhia de Bebidas das Americas (ADR) (NYSE:ABV), and Anheuser-Busch InBev NV (ADR) (NYSE:BUD). All of these stocks are in the beverages – brewers industry and their market caps resemble FMX’s market cap.