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

As industrywide interest jumped, specific money managers were leading the bulls’ herd. PEAK6 Capital Management, managed by Matthew Hulsizer, established the most valuable position in Coca-Cola FEMSA, S.A.B. de C.V. (ADR) (NYSE:KOF). PEAK6 Capital Management had $3.6 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $1.1 million investment in the stock during the quarter. The only other fund with a brand new KOF position is Andre F. Perold’s HighVista Strategies.

Let’s now review 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 Hess Corp. (NYSE:HES), Mead Johnson Nutrition CO (NYSE:MJN), Tenaris S.A. (ADR) (NYSE:TS), and W.W. Grainger, Inc. (NYSE:GWW). All of these stocks’ market caps are closest to KOF’s market cap.

As you can see these stocks had an average of 28.75 hedge funds with bullish positions and the average amount invested in these stocks was $1,043 million.That figure was $493 millions in KOF’s case. Mead Johnson Nutrition CO (NYSE:MJN) is the most popular stock in this table. On the other hand Tenaris S.A. (ADR) (NYSE:TS) is the least popular one with only 13 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 TS. Considering that hedge funds aren’t fond of this stock, 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.