Is Compania de Minas Buenaventura SAA (ADR) (BVN) A Good Stock To Buy?

Due to the fact that Compania de Minas Buenaventura SAA (ADR) (NYSE:BVN) has encountered bearish sentiment from the smart money, it’s easy to see that there is a sect of fund managers that decided to sell off their entire stakes in the third quarter. Intriguingly, Matthew Hulsizer’s PEAK6 Capital Management dumped the largest position of all the investors tracked by Insider Monkey, totaling an estimated $0.3 million in call options. Ken Griffin’s fund, Citadel Investment Group, also dumped its call options, about $0.3 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Compania de Minas Buenaventura SAA (ADR) (NYSE:BVN) but similarly valued. These stocks are Shopify Inc (NYSE:SHOP), AU Optronics Corp. (ADR) (NYSE:AUO), First Citizens BancShares Inc. (NASDAQ:FCNCA), and Telecom Argentina S.A. (ADR) (NYSE:TEO). This group of stocks’ market values are similar to BVN’s market value.

As you can see these stocks had an average of 15.5 hedge funds with bullish positions and the average amount invested in these stocks was $183 million. That figure was $45 million in BVN’s case. Shopify Inc (NYSE:SHOP) is the most popular stock in this table. On the other hand AU Optronics Corp. (ADR) (NYSE:AUO) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Compania de Minas Buenaventura SAA (ADR) (NYSE:BVN) is even less popular than AUO. 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.