Is Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX) the right pick for your portfolio? Money managers are turning bullish. The number of long hedge fund bets inched up by 12 in recent months.
To the average investor, there are tons of methods investors can use to monitor stocks. A couple of the best are hedge fund and insider trading activity. At Insider Monkey, our research analyses have shown that, historically, those who follow the top picks of the elite money managers can trounce the broader indices by a superb amount (see just how much).
Equally as integral, bullish insider trading sentiment is another way to break down the stock market universe. Just as you'd expect, there are a variety of stimuli for an upper level exec to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Plenty of academic studies have demonstrated the useful potential of this tactic if you understand what to do (learn more here).
With all of this in mind, let's take a look at the recent action surrounding Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX).
Heading into 2013, a total of 14 of the hedge funds we track were long in this stock, a change of 600% from the previous quarter. With hedgies' capital changing hands, there exists an "upper tier" of key hedge fund managers who were increasing their holdings considerably.
Of the funds we track, Blue Ridge Capital, managed by John Griffin, holds the largest position in Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX). Blue Ridge Capital has a $221.3 million position in the stock, comprising 3.1% of its 13F portfolio. On Blue Ridge Capital's heels is Rob Citrone of Discovery Capital Management, with a $91.2 million position; 1.3% of its 13F portfolio is allocated to the stock. Some other peers that hold long positions include David Stemerman's Conatus Capital Management, D. E. Shaw's D E Shaw and Ken Griffin's Citadel Investment Group.
As industrywide interest jumped, key money managers have been driving this bullishness. Blue Ridge Capital, managed by John Griffin, established the most outsized position in Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX). Blue Ridge Capital had 221.3 million invested in the company at the end of the quarter. Rob Citrone's Discovery Capital Management also made a $91.2 million investment in the stock during the quarter. The other funds with brand new BSMX positions are David Stemerman's Conatus Capital Management, D. E. Shaw's D E Shaw, and Ken Griffin's Citadel Investment Group.
Insider buying is at its handiest when the company in focus has experienced transactions within the past six months. Over the last six-month time frame, Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
Let's also examine hedge fund and insider activity in other stocks similar to Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX). These stocks are Bank of Ireland (ADR) (NYSE:IRE), HDFC Bank Limited (ADR) (NYSE:HDB), Popular Inc (NASDAQ:BPOP), and CorpBanca (ADR) (NYSE:BCA). This group of stocks are in the foreign regional banks industry and their market caps match BSMX's market cap.
|Company Name||# of Hedge Funds||# of Insiders Buying||# of Insiders Selling|
|Bank of Ireland (ADR) (NYSE:IRE)||2||0||0|
|HDFC Bank Limited (ADR) (NYSE:HDB)||17||0||0|
|Popular Inc (NASDAQ:BPOP)||16||0||0|
|CorpBanca (ADR) (NYSE:BCA)||1||0||0|
With the results shown by Insider Monkey's time-tested strategies, retail investors must always watch hedge fund and insider trading activity, and Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX) shareholders fit into this picture quite nicely.