Is Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (KOF) a Good Buy?

Now, key hedge funds were leading the bulls’ herd. Prince Street Capital Management, led by David Halpert, initiated the largest position in Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF). Prince Street Capital Management had $4.2 million invested in the company at the end of the quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP also initiated a $1.6 million position during the quarter. The only other fund with a brand new KOF position is Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) but similarly valued. These stocks are Symantec Corporation (NASDAQ:SYMC), Northern Trust Corporation (NASDAQ:NTRS), TransDigm Group Incorporated (NYSE:TDG), and Noble Energy, Inc. (NYSE:NBL). This group of stocks’ market values resemble KOF’s market value.

As you can see these stocks had an average of 36 hedge funds with bullish positions and the average amount invested in these stocks was $1652 million. That figure was $561 million in KOF’s case. TransDigm Group Incorporated (NYSE:TDG) is the most popular stock in this table. On the other hand Northern Trust Corporation (NASDAQ:NTRS) is the least popular one with only 30 bullish hedge fund positions. Compared to these stocks Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF) is even less popular than NTRS. 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.