Is Ambev SA (ADR) (ABEV) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. At the top of the heap, Richard Driehaus’s Driehaus Capital dumped the biggest stake of the “upper crust” of funds studied by Insider Monkey, worth about $19.4 million in stock, and Noam Gottesman’s GLG Partners was right behind this move, as the fund dropped about $3.1 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Ambev SA (ADR) (NYSE:ABEV) but similarly valued. We will take a look at China Petroleum & Chemical Corp (ADR) (NYSE:SNP), Eli Lilly & Co. (NYSE:LLY), United Technologies Corporation (NYSE:UTX), and Starbucks Corporation (NASDAQ:SBUX). This group of stocks’ market caps are closest to ABEV’s market cap.

As you can see these stocks had an average of 40 hedge funds with bullish positions and the average amount invested in these stocks was $1.91 billion. That figure was just $423 million in ABEV’s case. Eli Lilly & Co. (NYSE:LLY) is the most popular stock in this table. On the other hand China Petroleum & Chemical Corp (ADR) (NYSE:SNP) is the least popular one with only 11 bullish hedge fund positions. Ambev SA (ADR) (NYSE:ABEV) 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 LLY might be a better candidate to consider taking a long position in.

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Disclosure: None