Is Compania de Minas Buenaventura SA (ADR) (NYSE:BVN) undervalued? Investors who are in the know are taking a pessimistic view. The number of bullish hedge fund bets retreated by 4 recently.
At the moment, there are a multitude of metrics market participants can use to analyze publicly traded companies. A pair of the best are hedge fund and insider trading movement. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can outclass the market by a healthy margin (see just how much).
Equally as beneficial, optimistic insider trading sentiment is a second way to parse down the financial markets. As the old adage goes: there are many stimuli for a bullish insider to cut shares of his or her company, but just one, very obvious reason why they would behave bullishly. Several empirical studies have demonstrated the market-beating potential of this method if “monkeys” know what to do (learn more here).
Keeping this in mind, it’s important to take a peek at the latest action regarding Compania de Minas Buenaventura SA (ADR) (NYSE:BVN).
Hedge fund activity in Compania de Minas Buenaventura SA (ADR) (NYSE:BVN)
At year’s end, a total of 6 of the hedge funds we track were bullish in this stock, a change of -40% from the third quarter. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were upping their holdings significantly.
When looking at the hedgies we track, Odey Asset Management Group, managed by Crispin Odey, holds the largest position in Compania de Minas Buenaventura SA (ADR) (NYSE:BVN). Odey Asset Management Group has a $15.8 million position in the stock, comprising 0.9% of its 13F portfolio. On Odey Asset Management Group’s heels is Harvard Management Co, managed by Jane Mendillo, which held a $6 million position; 0.6% of its 13F portfolio is allocated to the stock. Some other peers with similar optimism include Howard Marks’s Oaktree Capital Management, Cliff Asness’s AQR Capital Management and Rob Citrone’s Discovery Capital Management.
Due to the fact that Compania de Minas Buenaventura SA (ADR) (NYSE:BVN) has witnessed a declination in interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of money managers who were dropping their full holdings heading into 2013. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the largest position of the 450+ funds we key on, valued at close to $5.5 million in stock., and Steven Cohen of SAC Capital Advisors was right behind this move, as the fund cut about $1.6 million worth. These transactions are important to note, as total hedge fund interest was cut by 4 funds heading into 2013.
What do corporate executives and insiders think about Compania de Minas Buenaventura SA (ADR) (NYSE:BVN)?
Insider trading activity, especially when it’s bullish, is at its handiest when the company we’re looking at has experienced transactions within the past half-year. Over the latest 180-day time period, Compania de Minas Buenaventura SA (ADR) (NYSE:BVN) has seen zero unique insiders purchasing, and zero insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Compania de Minas Buenaventura SA (ADR) (NYSE:BVN). These stocks are Gold Fields Limited (ADR) (NYSE:GFI), Franco-Nevada Corporation (NYSE:FNV), Randgold Resources Ltd. (ADR) (NASDAQ:GOLD), Eldorado Gold Corp (USA) (NYSE:EGO), and Agnico-Eagle Mines Limited (USA) (NYSE:AEM). This group of stocks are in the gold industry and their market caps match BVN’s market cap.