Is Grupo Financiero Galicia S.A. (ADR) (GGAL) Worthy of Your Portfolio?

Now, key hedge funds have jumped into Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) headfirst. RIT Capital Partners, led by Jacob Rothschild, established the largest position in Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL). RIT Capital Partners had $3.3 million invested in the company at the end of the quarter. George Soros’ Soros Fund Management also initiated a $2.2 million position during the third quarter. The other funds with brand new GGAL positions are Ken Griffin’s Citadel Investment Group, John Burbank’s Passport Capital, and Mike Vranos’s Ellington.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) but similarly valued. We will take a look at Brink’S Co (NYSE:BCO), Federal-Mogul Corporation (NASDAQ:FDML), Waddell & Reed Financial, Inc. (NYSE:WDR), and MRC Global Inc (NYSE:MRC). This group of stocks’ market caps are closest to GGAL’s market cap.

As you can see these stocks had an average of 17 funds with bullish positions and the average amount invested in these stocks was $550 million. That figure was $151 million in GGAL’s case. Brink’S Co (NYSE:BCO) is the most popular stock in this table. On the other hand Federal-Mogul Corporation (NASDAQ:FDML) is the least popular one with only eight investors holding shares. Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) 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 Brink’S Co (NYSE:BCO) might be a better candidate to consider taking a long position in.

Disclosure: none